- About 59.89% of the votes were cast against the amendment.
- UNI has more than doubled in value in the last month.
Uniswap [UNI] plunged more than 5% in the last 24 hours of trading on the rejection of a proposal allowing the decentralized autonomous organization (DAO) to make changes to the protocol’s fee mechanism.
Understanding the proposal’s significance
The governance token of the world’s largest decentralized exchange (DEX) was trading below $15 at press time.
This sparked some concerns for the asset that has otherwise gained 125% in the last month, according to CoinMarketCap.
The factory owner amendment, as it was popularly called, was proposed to the Uniswap DAO on the 3rd of March. The proposal aimed at accomplishing two stated goals.
First, to boost the participation of UNI token holders in the protocol’s governance, and second, to create an economic incentive for holders to delegate their tokens.
The proposer claimed that such changes would make the DAO “more robust” and prevent it from being restricted to a single implementation, thereby encouraging more experimentation.
A snapshot poll was subsequently conducted. However, about 30 million UNI votes, representing 59.89% of the total, were cast against the amendment, resulting in a rejection.
The snapshot vote, or a “temperature check” is done to ascertain the community’s sentiment towards the proposed changes. It is conducted off-chain and precedes the final on-chain vote.
Still a lot to look forward to
While the rejection dented the spirits of some community members, they might find solace in the larger, uplifting news from last week.
The landmark proposal to reward UNI holders who have staked and delegated their tokens passed the snapshot poll with a 100% majority.
Realistic or not, here’s UNI’s market cap in BTC’s terms
A successful on-chain vote would execute the suggested changes on the platform.
The first mention of the proposal by the Uniswap Foundation launched UNI up by more than 65%. Since then, it has more than doubled in value as of this writing.
