Uniswap Foundation Seeks Additional $46.2M Funding for Next Two Years of Operations
Zach Anderson Oct 11, 2023 09:15
The Uniswap Foundation initiates a governance proposal for an additional $46.2M funding to sustain its operations for the next two years. This follows a Temperature Check, ahead of an on-chain vote slated for October 12, 2023. The funds, converted based on a 30-day TWAP of UNI, are designated for grants and operational costs, among other strategic initiatives aimed at bolstering Uniswap's position in the DeFi sector.
Uniswap Foundation has initiated a governance proposal to secure additional funding of $46.2 million for the next two years of its operations, through an on-chain vote. The foundation's revised proposal follows a Temperature Check and aims to facilitate its operational and grant runway with a 10% buffer to counteract price risks. The governance vote is scheduled to commence on October 12, 2023, following the Temperature Check's completion.
The proposal is structured to allow the Uniswap Foundation to continue its growth and innovation in the decentralized finance (DeFi) sector. The requested funds, equivalent to 10,685,984.71 UNI at a 30-day TWAP (Time-Weighted Average Price) of $4.32342, are earmarked for various strategic initiatives. The core objective is to make Uniswap a vital liquidity layer for a self-sovereign internet and to ensure a robust, diverse, and values-aligned ecosystem.
Outlined in the proposal, $28.33 million is allocated towards grants, while $13.6 million, inclusive of 508,000 UNI, is dedicated to operations for the specified timeframe. An additional 10% buffer is included to cushion against price volatility. The funding request is based on a 30-day TWAP conversion rate on the governance proposal's posting day.
The Uniswap Foundation has made significant strides since its inception. Some notable achievements include the launch of Oku Trade, a pro-trader interface, and the TL;DR Research Institute, a DeFi-focused research hub. Moreover, partnerships with Gauntlet and hackathon sponsorships have been vital in fostering innovation within the Uniswap ecosystem.
Looking ahead, the foundation aims to develop the Hooks ecosystem, launch the TL;DR Fellowship in October 2023, and continue to support digital and in-person delegate events. Additionally, plans to expand its team across different domains are in the pipeline to realize its long-term goals.
Historically, the Uniswap Foundation has awarded $4.8 million in grants across five categories and spent $3.15 million on operations over the last year. The treasury diversification policy is geared towards capital preservation and risk mitigation, with operational funds being diversified into low-risk yield-bearing assets, stablecoins, and a portion maintained in an FDIC-insured bank account.
The Uniswap Foundation is moving forward with a governance vote to secure additional funding, reinforcing its commitment to fostering a robust ecosystem around the Uniswap Protocol. The foundation's strategic initiatives, coupled with a transparent financial allocation and treasury diversification policy, underline its structured approach towards achieving long-term objectives in the DeFi landscape.
Image source: Shutterstock