- Uniswap seeks $62 million in a second funding tranche via on-chain vote.
- Funding to be utilized for operational needs and research grants.
- Uniswap Foundation’s pivotal role in advancing DeFi innovations.
The Uniswap Foundation is aiming to secure an additional $62 million in funding through an on-chain vote, as disclosed in their announcement on September 27th. This funding represents the second portion of a $74 million allocation for the Uniswap Foundation’s development endeavors.
The proposed allocation of $62 million includes a 10% buffer to account for price volatility. A decisive on-chain vote is scheduled for October 4th, where the Uniswap community will determine whether to approve this funding. Should the vote pass, these funds will be earmarked for various operational needs and research grants. The primary mission of the Uniswap Foundation is to enhance core protocol metrics, cultivate an innovation pipeline, and align incentives among stakeholders in the widely-used decentralized exchange (DEX).
Developers have outlined their plans for the upcoming year, which include crafting a software development kit for Uniswap v4 and providing support for its subsequent migration. Notably, they have already received $17.3 million from the initial tranche to advance these goals. The decision to split the funding request into two tranches was made to allow ample time for the establishment of their legal entity and the acquisition of nonprofit 501(c)4 status from the Internal Revenue Service. This administrative groundwork was reportedly completed in the spring, prior to the receipt of the larger initial payment.
The Uniswap Foundation has provided insight into its financial activities over the past year, including $4.8 million allocated to research grants, $3.15 million designated for operational expenses, and a $1.29 million loss due to a decline in the market value of UNI tokens occurring between the inception of the governance proposal and the fund reception. Developers have disclosed that the Uniswap Foundation currently holds $53.2 million in grants capital available for distribution. They plan to disburse between $10 million and $15 million annually, with the disbursement amount expected to grow progressively over time.
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.