Final week, Uniswap unveiled its governance token, UNI. Introduced as a option to decentralize the protocol, it could seem that the distribution just isn’t as decentralized as marketed.
Escrow interval in query
Final week, Uniswap launched its governance token the UNI. In complete, 1 billion tokens have been created. These tokens are supposed to decentralize the governance of the protocol and have been distributed to the customers, creators and traders of the mission.
In follow, 60% of the overall provide was distributed to protocol customers, whether or not by means of the airdrop of 150 million tokens or by means of the liquidity mining marketing campaign. The remaining 40% was distributed to the creators, workers, traders and different advisers of the protocol, with a interval of escrow of 4 years.
Sadly, in response to a study published by Glassnode, plainly a grey space exists across the interval of escrow. So, whereas it was introduced, no timeline for the distribution was launched.
Worse but, all funds can be held on a single Ethereum handle, with no restrictions on transfers.
“Whereas the distribution schedule pictured above reveals them vesting steadily, the tokens allotted to the Uniswap crew and traders are presently held in common Ethereum addresses (i.e. externally owned addresses, or EOAs) with no switch restrictions. In distinction, the governance treasury tokens are locked up in good contracts and might be launched programatically over time.” – Glassnode report
Due to this fact, nobody is aware of who has management of the personal keys of those addresses. Because of this and due to the dearth of restriction on transfers, the tokens are not strictly talking in escrow.
Binance, the king of Uniswap governance
In his report, Glassnode takes the chance to query the governance mechanisms of Uniswap. Due to this fact, to publish a proposed change, a consumer should personal (or have been delegated) 10 million UNI, or 1% of the overall provide.
Anyway, all the tokens haven’t but been distributed. In actuality, the publication of a proposal requires 8% of the overall provide. On the time of writing this text, solely the centralized change platform Binance holds sufficient UNI tokens to concern a proposal. An absurd state of affairs for the governance of a platform that desires to be decentralized and group.
Glassnode’s report concludes on the close to impossibility of seeing governance proposals from the group, a subject that had already been addressed by Andre Cronje the creator of yEarn.
“Consequently, except somebody can foyer 10 million UNI value of delegated voting energy and at the very least 40 million votes, community-led governance is actually unimaginable in the meanwhile.” – Glassnode report
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