The Uniswap Foundation — the organization overseeing the decentralized exchange Uniswap — has postponed May 31’s highly anticipated vote on UNI staking and delegation rewards.
The foundation announced on X that it postponed the vote due to a concern raised by a stakeholder. This prompted a more thorough review and examination of the proposal, leading to a delay in the decision-making process.
The vote is postponed
The vote would have moved the decentralized exchange closer to activating its “fee switch” and giving incentives to UNI tokenholders who staked and delegated their tokens.
According to Erin Koen, the lead official overseeing the Uniswap DAO governance forum, in an announcement made on the Uniswap DAO governance forum, the proposed upgrade requires rigorous vetting due to its sensitive and irreversible nature, emphasizing the importance of thorough scrutiny before proceeding.
The Uniswap DAO has been exploring the possibility of enabling a fee switch for several years, but previous proposals have been stalled due to concerns about potential violations of U.S. securities laws. This has led to a cautious approach and delayed progress on this issue.
Community reactions
Dan Robinson, a partner at the crypto venture capital firm Paradigm, criticized the Uniswap Foundation's decision to delay the vote, accusing them of yielding to pressure from another unnamed venture capital firm.
Another user pointed out the irony of the situation, asking if the delay doesn’t discredit the idea of a decentralized governance system. They implied that the unnamed VC firm’s actions had revealed its significant influence, which could be seen as a mistake, undermining the decentralized values.
Plans before postponement
The Uniswap Foundation’s latest proposal, introduced in February, seeks to address previous concerns and has gained community support through an advisory vote, known as a “temperature check,” held earlier this year.
To prepare for the initially scheduled May 31 vote, UNI holders had to delegate their tokens on the platform before the voting went live to participate, the Uniswap Foundation explained a week earlier.
The Uniswap Foundation recently disclosed holding $41.41 million in fiat and stablecoins and 730,000 UNI tokens as of the end of the first quarter.
According to a publication by the Foundation, it committed $4.34 million in new grants during this period and disbursed $2.79 million in previously committed grants.
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