Community members of the decentralised exchange (DEX) have voted in favour of changing its governance process. The proposal made to its DAO last week seeks to ease how the Ethereum-based platform will be governed.
Members of Uniswap’s (UNI) decentralised autonomous organisation (DAO) have voted in favour of reforming the DeFi protocol’s voting structure to streamline how it will be governed here onwards. The proposal which is expected to “improve efficiency and efficacy” for the DAO, was opened for voting last week. Almost 100% of the community was in favour of the changes endorsed within the ecosystem.
The biggest change would see the decentralised exchange’s (DEX) governance body reduce its requirements for off-chain “snapshot votes” that precede on-chain votes to one. Currently, 37 off-chain delegates meet the 2.5 million UNI threshold required for passing a vote. Proposers would only need to garner support from two of these members to move to the last governance vote with a 5 million UNI quorum. With the new upgrade, Uniswap will increase the quorum required by off-chain delegates to pass a proposal from 5 million to 10 million UNI.
According to Devin Walsh, director of the Uniswap Foundation – a body aimed at supporting developers within the ecosystem and ease governance, this would drastically raise the barrier for clearing preliminary votes. The new threshold will be high enough to prevent lower quality proposals from moving to the final phase, while being low enough for higher quality proposals to gather enough support and move on to the final phase.
“The intention of the off-chain votes is to provide a signal to the community that there’s consensus on a proposal. 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,” said Walsh to crypto news outlet CoinDesk.
While both kinds of voting require members to participate with UNI, on-chain votes add the results on to the Ethereum blockchain, whereas off-chain votes are polled based on the initial stance of community members on a proposal.
The DeFi platform originally endorsed that when changes are proposed off-chain, the voting process should also be held off-chain. However, GFX Labs – a partner of Uniswap, pointed out that many crypto custodians do not allow UNI holders to vote off-chain, thus making it impossible for some tokens to be delegated in the voting process. The company is asking for feedback from community members regarding this notion.
Uniswap has also updated the deadline for its “Request for Comment” process from the originally proposed three days to a minimum of seven. By offering a minimum of one week, the exchange is ensuring that community members will have adequate time to go through each proposal, ask questions and provide feedback. “Request for Comment” will replace the off-chain Snapshot polling procedure.
Changes made by Uniswap to ease out its governance process is part of an effort to encourage all UNI holders to participate in its decentralised autonomous organisation (DAO) to help shape the future of the platform.
At the time of writing, UNI, the native token of Uniswap, is trading at $5.32 – up by 0.5% in the last 24-hours. With over 750 million tokens currently in circulation, Uniswap has a total market valuation of $4.01 billion.