The decentralized stock exchange Uniswap is currently reviewing the first management vote that was introduced by the open source lending protocol. However, several members of the community have expressed concern that if the proposal is successful, it will give Dharma considerable control over Uniswap’s future direction.
The proposal, which ends on 19 October, proposes lowering the symbolic threshold for governance and quorum. This is likely to give older owners – and among them Dharma – more power over decisions regarding Uniswap.
Currently, Uniswap management requires bidders to retain 1% of the total delegated UNI offer (10 million tokens), and a quorum of 4% (40 million UNI) is required to accept the offer. Dharma proposed lowering these thresholds to 0.3% and 3%, respectively.
A recent blog post by community member David Felton known as Hiturunk on Uniswap Discord explores why this proposal is bad for decentralization. He claims that Dharma actually has a large number of votes and controls 15 million UNIs at just one address. He says this is a threat to Uniswap’s supremacy, even if the offer is not accepted.
If the quorum is accepted, the quorum can only be achieved with the leading delegates – the Dharma blockchain platform and the Gauntlet simulator, which add up to about 30 million UNI between them, and this is enough to vote to reach the minimum quorum.
Felton said the proposal “will anchor them so firmly in the Uniswap management system that they can also fully own DEX,” and asked for a vote on it:
“We strongly recommend that all Uni holders vote against this proposal in order to maintain a quorum as desired by the developers.”
But stopping the proposal is a big task at the moment: more than 30 million votes for and only 625,000, or 2% against, according to the vote tracking.
While this proposal seems to enjoy support on this point, some figures, such as the DeFi blog DeFiPrime, suggest that things should change once they are adopted:
“I support Dharma’s proposal, but I believe that the voting cartel they created to cross the standard threshold for Uniswap should be resolved shortly after the proposal is accepted.”
Chris Blake, founder of DeFi Watch, claims that he was banned by Dharma after questioning the motives behind the proposal.
He added that they must release the DeFi brand if they want to join the Central Exchange club.
“A company like Dharma with clear business interests should not have this level of control over Uniswap solutions. This authority should be delegated to users, not companies. ”
Dharma itself has declared its belief that change will benefit good government. “We believe this proposal will help strengthen Uniswap’s active management process,” he said. “It achieves the goal of making management more accessible while ensuring that Uniswap’s control is not dependent on one – way attackers.”
Uniswap founder Hayden Adams seems overjoyed to have the first management proposal on the voting board:
“An important milestone for decentralized management, UniswapProtocol !!!”
Uniswap was recently criticized for underlying problems when the analytics provider Glassnode reported that there were enough tokens (26 million) on the central exchange Binance to go far against voting results on a proposal.