Uniswap’s first governance proposal following the launch of its governance token is set to be approved. While opposed by some, the community largely favors the change, which is expected to increase the participation rate.

Uniswap is undergoing its first governance proposal, one that was initiated by the Dharma DeFi platform on Oct. 13. The vote aims to reduce the proposal submission and quorum values by implementing threshold values of 3 million UNI and 30 million UNI, respectively.

The proposal description claims that the lower thresholds will make governance participation more democratic, as more people will be able to submit a proposed change. It states that this will help foster a vibrant governance process. The voting period will end on Oct. 19.

Yearn.finance founder Andre Cronje has also entered the discussion, asking for UNI holders to vote in favor of the change. Currently, the overwhelming majority of voters are on board, with over 39.5 million voting “for” the change. Approximately 683,000 participants have voted against the change.

Advertisement
Continue reading below

Controversy Surrounds the Vote

However, not everyone appreciates the idea of the reduced threshold values. The governance proposal, which Dharma initiated, has been subject to the criticism that it may favor whales. Community members have suggested that the change would favor large UNI holders like Dharma and Gauntlet.

Pine.finance founder Agustín Aguilar has voted against the change, saying that his priority was to preserve the integrity of governance.

Uniswap Remains the No. 1 DEX

Uniswap launched its UNI governance token on Sept. 16, soon after the Sushiswap fork began drawing users away from it. It did well in terms of use, if not price, following the launch. The team’s decision to airdrop 400 UNI tokens to previous users widely lauded.

Uniswap – the most popular DEX

It is by far the most popular DEX in use, with $2.6 billion locked in, according to DeFi Pulse. Statistics from Dune Analytics also show that monthly volume for Uniswap was $15.3 billion in October — more than what Coinbase recorded in the same month. Uniswap also has the highest number of users, at over 428,000.