The Uniswap Dharma sparks controversy over governing the protocol as it wants to make it easier for the community to govern it as we are reading more in our latest crypto news.
The concerns abounded that this will lead Dharma into making a cartel. Uniswap introduced the governance protocol back in September. Dharma is a portal to decentralized exchange Uniswap which misled the people into voting for a proposal that will allow a few companies to enroll the network into passing any proposal they like. A lot of that was not true but the debacle pressed on the scars in Uniswap’s fledging governance system.
1/ We have made the first proposal to @UniswapProtocol's new governance system: Reduce UNI Governance Proposal & Quorum Thresholds
TL;DR: We propose a threshold of 3m UNI for proposal submission (down from 10m), and 30m UNI as quorum (down from 40m).https://t.co/MDZkTfwMYt
— Dharma (@Dharma_HQ) October 12, 2020
Dharma proposed to lower the threshold for submitting a proposal to alter the network from the 10 million UNI to 3 million and also wanted to lower the amount of UNI that the community has to stake to pass a vote from 40 million UNI to 30 million. the company said that reducing the threshold will democratize the project and will help foster a vibrant Uniswap governance process.
Why are you choosing to vote no?
— BSA EPFL (@bsa_epfl) October 14, 2020
Others said that if the proposal passes when the voting closes, it will make it easier for Dharma and another major proponent of the proposal blockchain simulation company Gauntlet, to pass more proposals if they work together. That’s because Dharma and the latter are huge bagholders of UNI. The founder of Pine. finance Agustin Aguilar said that reducing the threshold will encourage the formation of a cartel because it will be easier for the whales to pass proposals. Amid these concerns, Uniswap’s community fought back by taking lot more tokens to the voting system preventing the two projects from forming a cartel.
If "FOR" wins, then @NadavAHollander and @tarunchitra will have enough power to control the outcome of *every* Uniswap vote.
1st thing Nadav plans to do is vote-in a $UNI airdrop to his Dharma users from the "community treasury".
If this isn't a governance attack, then what is? pic.twitter.com/TsTfIWjKTN
— Chris Blec (@ChrisBlec) October 14, 2020
The fear was that if the proposal passes, Uniswap Dharma that has backing from Gauntlet that will have enough power to follow over on the plans to use Uniswap’s treasury funds to pay the community. Dharma said that the users are entitled to the money as Uniswap gave 400 uni to everyone that used the platform. Dharma and other DEX aggregators and Uniswap apps as the users were wrongly left out of Uniswap’s airdrop. Others believe that these projects will include Uniswap competitors as Aguilar said:
It’s almost like Apple taking funds from Microsoft’s treasury to reward iPad users.”
Aguilar is concerned that lowering the quorum will bring problems to the community rather than to empower it:
“If this quorum rate is lower, then this is more like a cartel. Only two companies practically control the governance.”
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]
Discussion about this post