Uniswap DAO Community Members Vote in Favor of New Governance Process

After a week-long vote that ended Wednesday, nearly 100% were in favor of making changes to the voting process in an effort to reduce friction associated with community governance.

AccessTimeIconDec 21, 2022 at 9:07 p.m. UTC
Updated Dec 22, 2022 at 7:17 p.m. UTC
Consensus 2023 Logo
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Cam Thompson is a news reporter at CoinDesk.

Consensus 2023 Logo
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Uniswap community members chose Wednesday to reform the voting process on the popular decentralized finance (DeFi) protocol in an effort to make it easier to change the way the system is governed.

The initial proposal, which opened to a vote last week, saw nearly 100% in favor of altering the governance structure within the ecosystem.

The biggest changes will see Uniswap reduce the number of off-chain "snapshot votes" that precede on-chain votes to one. Final governance votes – the on-chain votes that approve or reject a proposal – will remain the same.

While both kinds of votes require participants to contribute UNI, the native token of Uniswap, on-chain votes add data to the Ethereum blockchain, whereas off-chain votes poll community members on their initial stance towards a proposal.

Devin Walsh, director of the Uniswap Foundation, said the proposal seeks to address inefficiencies in the governance structure with changes such as increasing the quorum – or amount of UNI represented – for voting and reducing the number of votes to pass a proposal.

“The intention of the off-chain votes is to provide a signal to the community that there's consensus on a proposal,” Walsh told CoinDesk. “What we found is you only need one off-chain vote to achieve that benefit of a signal, and requiring the community to vote twice is redundant and unnecessary.”

The move to ease governance is part of an effort to empower community members to participate in the protocol’s decentralized autonomous organization (DAO). In August, Walsh and Head of Ops Kenneth Ng spearheaded efforts to establish the Uniswap Foundation, a body aiming to support developers within the ecosystem and streamline governance.

Uniswap is not alone in trying to facilitate a more frictionless DAO governance environment. Earlier this month, the creator behind Waves Blockchain said he would explore a new DAO governance structure to emphasize accountability within the protocol.

Walsh told CoinDesk that when a DAO establishes its voting structure it must “contemplate whether goals of its governance process are being reached, and be open to iterating upon the process to reach those goals.”

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Cam Thompson is a news reporter at CoinDesk.


Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


CoinDesk - Unknown

Cam Thompson is a news reporter at CoinDesk.