Uniswap’s $40M Governance Vote Closes on Halloween and Some UNI Holders Fear for Price

Should users who interacted with Uniswap through a third-party interface be entitled to the free UNI tokens other users received on Sept. 17?

That’s the question at the center of a dispute currently taking place in Uniswap governance channels. The second-ever proposal to come before the Uniswap community would distribute airdropped UNI tokens to another 12,619 addresses, ahead of a second proposal set for nearly 27,000 addresses.

As of this writing, over 20.7 million UNI have been voted in favor of the proposal and more than 714,000 have been voted against. The vote closes on Oct. 31 at roughly 8:00 AM UTC.

While the vote may look extremely lopsided at the moment, the proposal will fail if less than 40 million UNI vote, establishing a quorum. The key obstacle to passage is probably reaching that threshold.

The decision is widely interesting enough to the crypto community that it’s inspired a betting market on Polymarket, which currently leans toward the pitch for further UNI distributions failing.

If both proposals succeed, however, an additional 15,679,200 UNI would be distributed from the existing treasury, worth approximately $40.6 million, at the current price of $2.59 per UNI. Of that, 5,047,600 UNI would be redistributed from the treasury in phase one.

400 UNI, 40,000 more times

When the company behind Ethereum’s leading automated market maker, Uniswap, announced its governance token, UNI, in September, it surprised everyone by giving away 400 UNI to all wallets that had ever even used the decentralized application. Directly, that is.

At the time, each airdrop was worth well over $1,000.

Read more: Uniswap’s Distribution Is Built on Something That Can’t Be Forked: Actual Users

As a governance token, each UNI can be used to vote on decisions about changes to the dapp and also on expenditures from the Uniswap treasury, which has a supply of 430 million UNI or 43% of the initial supply.

The proposal under consideration now, and the one that will follow,…

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