Uniswap DAO Opposes Fee Switch Proposal In Close Run Vote

The Uniswap DAO has voted against a proposal to turn on protocol fees for liquidity providers. The poll saw 45% opposed to turning on proposal fees, while support for two fee plans was divided.

A Divided Community

The community vote ran neck and neck and concluded at 1.05 PM ET on Thursday, with extremely close results and a divided community. Looking closely at the poll, 45% of the votes expressed complete opposition to the proposal to turn on fees. 42% of the votes supported the proposal to charge 1/5 of the pool fee across Uniswap V3 pools, while the remaining 12% voted in favor of charging 1/10 of the pool fee, and 0.04 voted in favor of charging 1/6 of the pool fees.

“Uniswap fee switch vote neck and neck in the final hours. Fun fact, I don’t think any UNI vote that’s passed on snapshot has been turned down once proposed on-chain.”

Divided Support

However, it is worth noting that the proposal failed to pass despite 54% of the votes cast favored charging liquidity providers protocol fees. However, those supporting protocol fees were sharply divided regarding how much liquidity providers must be charged, as seen in the breakup of the voting preferences. This meant that while support for charging a fee collectively surpassed the opposition to implementing a fee (55% vs. 45%), no category exceeded the support for the “no fee” votes. 56 million UNI tokens were used to cast the votes.

Another factor that potentially swung the votes towards those that voted against implementing a fee was a handful of wallets that voted against protocol fees at the last minute. A closer look at the history of the wallets in question revealed that the addresses linked to the wallet were only recently created and had nearly zero transaction history prior to the vote. Chris Blec, a DeFi researcher, commented on the results stating,

“The whales that dominate Uniswap governance (a16z, Hayden, etc.) refuse to activate the fee switch because they don’t want to create a legal liability. The irony is that they’re still creating legal liability by using their massive voting power to kill every fee switch proposal.”

The result will not prevent further votes by the community

Go to Source to See Full Article
Author: Amara Khatri

Did you like this?
Tip BTC Newswire with Cryptocurrency