Dharma's new governance proposal at Uniswap could ruin UNI's price
The Blockchain Dharma protocol has issued another governance proposal about the famous DEX Uniswap, this time asking for an airdrop.
If approved, the proposal would reward thousands of users who have interacted with Uniswap through third-party platforms. However, investors fear that the airdrop will have an incredibly negative effect on prices.
Dharma created the governance proposal this week and has already garnered 28.4 million votes in favor. To pass, users only need to delegate 30 million UNI tokens in total. Since voting will end on Halloween, the community has less than 24 hours to reach an additional 1.5 million votes.
The proposal itself indicates that it seeks to bring a retroactive distribution of UNI tokens, which was discussed numerous times in the Uniswap forums. Essentially, the distribution would reward 400 UNI tokens to 12,619 unique addresses that have interacted with Uniswap through a proxy contract. Dharma notes that all of these 12,619 addresses were excluded from the original airdrop as they did not directly interact with Uniswap.
If approved, the distribution process would deliver 5 million UNI tokens in total. At current prices, that works out to $ 11.5 million. While this would not completely destroy UNI's price, investors are still at the mercy of this proposal, as it would introduce significant selling pressure. As we have seen with the first airdrop in September, most of the users decided to instantly sell their tokens instead of holding them.
Among addresses, the majority of eligible users used MyEtherWallet (MEW), Argent, and Dharma. There is also an important part of addresses that interacted with Uniswap through DefiSaver, Nuo, Eidoo.
Dharma already issued a failed governance proposal on Uniswap
Like CryptoEconomy reported previously, the first governance proposal was also made by Dharma. At that time, the loan protocol sought decrease the number of UNI votes needed to pass a proposal from 40 million to 30 million. Similarly, the number of tokens required to submit a governance proposal was also reduced.
Many in the DeFi community believed this would wreck Uniswap's decentralization. Since it is publicly shared information, we know that Dharma owns 15 million UNI tokens. Furthermore, we also know that another blockchain protocol, Gauntlet, also owns 15 million tokens. In theory, these two projects could vote together and achieve the minimum quorum necessary to present and approve governance proposals.
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