Uniswap, the world’s pioneering decentralized exchange platform has failed in a bid to enact new governance proposal approach. This happened despite an overwhelming 98% support within the community. The overall vote needed to enact this proposal was missed by a very small margin.
A Proposal to Reduce the Minimum Number of Votes for Future Proposals
The defeated proposal was regarding an update that would have allowed future governance proposals to be passed with less number of votes. However, the move failed ironically and thus, the overall network still requires around 40 million staked UNI tokens for enacting a proposal, same as before. The development is very interesting and has been described in a tweet by Danger ”Safetythird” Zhang as equivalent of winning the popular vote and losing the electoral college. This when a US presidential candidate wins the most votes but loses the election because of the political setup.
Now the requirement for governance proposals within the system are simple, but are proving to be difficult to execute. This is why a lowering of the voting criteria was put forward in this vote but it was ultimately defeated. So, the system will continue working that way for now. The total number of votes cast for this proposal were 39.6 i.e. around 98% of the total UNI circulation but still fell short of the 40 million UNI needed to have any governance changes. According to the current rules, coin holders with more than 1% of the total UNI tokens can propose changes on their own but for approval, one needs an almost consensus within the network itself.
Dharma, the group behind the latest proposal was disappointed by this development. Nadav Hollander, the Dharma CEO described the development as
a disappointing outcome that demonstrates the impetus for the proposal in the first place.
Despite the defeat, Uniswap continues to be a credible platform for a true decentralized future. This shows that the users can trust the system to do the right thing if a consensus is failed to achieve. This is unlike many other platforms including bigger ones like Ethereum in which updates are often pushed in a top-down move and the concept of supernodes can diminish the voting power of ordinary token holders within the system. So, while the Uniswap’s update failed, trust in its system increased. Overall, no one can be stopped from making more proposal changes and it is expected that this vote reduction will once again come up in the near future.
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