- About 59.89% of votes were cast against the amendment.
- UNI has more than doubled in value in the past month.
Uniswap [UNI] fell more than 5% in the last 24 hours of trading following the rejection of a proposal that would allow the Decentralized Autonomous Organization (DAO) to make changes to the protocol’s compensation mechanism.
Understanding the meaning of the proposal
The governance token of the world’s largest decentralized exchange (DEX) was trading below $15 at the time of writing.
This led to some concern about the asset, which is otherwise up 125% in the past month CoinMarketCap.
The Factory Owner Amendment, as it was popularly known, was proposed to the Uniswap DAO on March 3. The proposal aimed to achieve two stated goals.
First, to increase the participation of UNI token holders in the governance of the protocol, and second, to create an economic incentive for holders to delegate their tokens.
The submitter claimed that such changes would make the DAO “more robust” and prevent it from being limited to a single implementation, thus encouraging more experimentation.
a snapshot survey was then carried out. However, approximately 30 million UNI votes, representing 59.89% of the total, were cast against the amendment, resulting in a rejection.
The snapshot, or a “temperature check,” is conducted to determine community sentiment toward the proposed changes. It is carried out outside the chain and precedes the final vote within the chain.
There is still a lot to look forward to
While the rejection dented the spirits of some community members, they might find solace in last week’s bigger, more uplifting news.
The landmark proposal to reward UNI holders who staked and delegated their tokens passed the snapshot poll with a 100% majority.
Realistic or not, here is UNI’s market cap in BTC terms
A successful on-chain vote would implement the proposed changes to the platform.
The Uniswap Foundation’s first mention of the proposal sent UNI up more than 65%. Since then, its value has more than doubled at the time of writing.