The Uniswap Labs community has started considering a new proposal that would create the Uniswap Foundation in the United States (US), but first, it will cost $74 million.
The proposal has received mixed feedback from the community so far, with many praising the foundation’s plans to support and expand the Uniswap ecosystem, while others are hesitant about its high price.
The August 5 proposal is propose According to Walsh, Devin Walsh, former chief of staff of Uniswap Labs, and Kenneth Ng, head of the Uniswap grant program, noted that the foundation’s primary goals are “to support the decentralized growth of the protocol, reinvigorate governance, and act as a protocol advocate.”
If passed, the Uniswap Foundation (UF) will be established in Delaware, with Walsh as executive director and Ng as head of operations.
To achieve her vision, Walsh is asking for $74 million in UNI tokens over three years, of which $60 million will be used for her own Uniswap Grants Program (UGP) and another $14 million will be used as an “operating budget” to form A team of 12 people.
Uniswap is the world’s largest decentralized exchange (DEX) by trading volume. Uniswap V3, the third version of the DEX completed $793.8 billion in trading volume in the past 24 hours, on par with centralized exchanges (CEX) Huobi Global and KuCoin according to to CoinGecko.
Uniswap founder Hayden Adams Announce In an Aug. 4 tweet, he was “very excited about this proposal.” Adams seemed confident that the proposal would pass, adding: “After this passes, the Foundation will be another team working on a future where the protocol doesn’t just exist – it thrives!”
5/ The power of the ecosystem grows with each build and effort of the team towards success.
IMO, after this past, the foundation will be another team dedicated to making the protocol not only exists – it thrives in the future!
— hayden.eth (@haydenzadams) August 4, 2022
While the proposal has so far received considerable support from Adams and the rest of the Uniswap community, it has met with its fair share of critics who say the price is too high.
Adam Cochran, a partner at Cinneamhain Ventures, shared his nod to UF’s goals, but added in an Aug. 4 tweet that the $60 million for UGP was “misguided at this stage.”
So I don’t mind the proposal to create the Uniswap Foundation – and I think it’s well planned.
But at this stage, the $60 million given to UGP is wrong.
The Uni Grants Program has deployed around $7 million in grants to date, and frankly, it hasn’t worked out well.https://t.co/Ri3VNOBh6c
— Adam Cochran (adamscochran.eth) (@adamscochran) August 4, 2022
Cochran pointed out that the $7 million in grants already issued by the UGP so far has been used for “prosaic” problems. He concluded that while UGP has invested in several valuable businesses, “I don’t think the current performance is worth it” giving us $60M + $14M to run for 3 years. “
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So does Scott Sunarto, co-founder of the decentralized game Dark Forest. felt UF’s goals are in line with the agreement’s growth potential, but there’s too much “fluff” in the proposal. He suggested that UF should focus on “protocol growth and R&D.”
If the currently ongoing polls pass, the proposal will go to a final vote on August 8 on the Snapshot governance voting platform.
UNI is up 1.4% in the past 24 hours, trading at $9.04 according to to CoinGecko.