• Traders and analysts slam Uniswap's latest proposal in favor of making a sizable grant to a specific community analytics provider, Flipside Crypto.
  • Crypto analytics providers Dune Analytics and co-founder of DeFiPulse request the community to vote in the negative.
  • Though the Uniswap community is divided, there is no negative impact on UNI's price yet.

Uniswap has sparked a controversy among traders and crypto enthusiasts by calling a vote for a controversial governance proposal when there was a lack of community attention.

Uniswap Governance at major crossroads considers granting $25 million to Flipside Crypto

Uniswap is a decentralized exchange protocol governed by UNI token holders. Any address that has over 10 million UNI delegated to it is eligible to create a proposal. The community votes on the proposal over the next three days, once the majority votes are cast, the proposal is queued in the Timelock and executed in a minimum of 2 days. 

Uniswap's recent proposal has sparked controversy since the community is voting on a $25 million grant to a specific analytics provider, Flipside Crypto when there are several in the DeFi ecosystem who are delivering analytics for Uniswap without any grant. 

Flipside requires the $25 million to produce Community-Enabled Analytics for Uniswap and proposes not to spend it but to utilize it for earning yields every month. If a 30% yield target is achieved, the $15 million (the $25 million is split in $15 million disbursed near instantly and $10 million later) will generate approximately $2.25 million every year. 

Flipside Crypto plans to deliver 50% of the monthly yield, $93,750 as bounties for community members, and pay for eight full-time employees to support the development of the analytics platform with the rest. 

Scott Lewis, the co-founder of analytics platform DeFiPulse, stated that the incentives on the grant request are misaligned and noted how it has received negative feedback.

Lewis commented on the proposal request in the forum:

The "profit creation" part is a bit of a boondoggle, and eliminates long-run accountability. There is not a good reason $25M must be granted outright IF the goal is to provide low six-figure amounts in bounties.

The part where UNI is utilized for earning a yield has left community members confused; what's more, what happens to the $25 million after the course of the initiative is not yet clear. 

The community's biggest concern is that Uniswap's venture capitalists can make the proposal go through with limited accountability if they attach their reputation and resources to the recipient of the funds. 

Analyst and investor behind the Twitter handle @iamDCinvestor agrees with Lewis' stand. 

Dune Analytics, an analytics provider, made a public service announcement on Twitter and called out the fact that a proposal to pledge $25 million out of the Uniswap Treasury is on vote, with near-zero attention from the community. 

Despite the divide in the community on whether Flipside Crypto deserves the $25 million or not, there is no immediate impact on UNI's price. Earlier today, the proposal had more UNI holders voting for than against; the table has flipped after crypto Twitter's reaction. 

Uniswap Proposal

It remains to be seen whether UNI holders will let the proposal pass or support the plea of analysts and influencers on Twitter to stand against "self-serving proposals."

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Cryptos enter buy zone

Bitcoin price has made a significant dip this week, dropping more than 11% and returning levels not trades since August 2021. Etheruem price hits new three-month lows, threatens a return to the $2,300 value area. XRP price looks determined to push lower to the $0.65 support zone before generating another bull run.

More Cryptocurrencies News

Loopring, NEAR and Harmony among the biggest losers as crypto bloodbath intensifies

Altcoins suffered double-digit losses in the recent crypto bloodbath. The recent spike in altcoin prices was followed by a correction for Loopring, Harmony and NEAR. The losses nursed by altcoins were accompanied by a wave of selling pressure across exchanges. 

More Cryptocurrencies News

Shiba Inu price set to crash by 70% as critical support weakens

Shiba Inu (SHIB) price continues to be controlled by bears after the dead-cat bounce in stock markets yesterday evening. With the Nasdaq closing sharply lower, giving up earlier gains, cryptocurrencies are being dragged into a selloff on its coattails, and bearish headwinds  persist. 

More Shiba Inu News

Crypto.com Price Prediction: CRO ready to return to $0.25

Crypto.com Coin (CRO) is withstanding the current market headwind not that great. It has already lost over 50% of its value from the highs, and CRO could be set to lose another 30% as essential support is being breached.

More Crypto.com News

Bitcoin: BTC may capitulate to $30,000

Bitcoin price has dropped considerably over the last three weeks. The recent downswing has made things worse for BTC and hints that a steep correction could be on its way.

Read full analysis

BTC

ETH

XRP