Preface: I was not entirely sure if this is the right section to post this. we discussed it on discord and the consensus was that this could be in the scope of governance so here we are.
Uniswap is built on the concept of liquidity pools. more liquidity means more stable prices and therefore healthier pairs. coins are locked in these pools for great lengths of time.
One of those pairs is UNIETH, with currently ~5.6 million UNI locked up in the pool.
The problem I see is that currently it is not possible to vote with pooled UNI. in order to vote, one would have to leave the pool altogether and repurpose their UNI to the vote. on a personal level this leaves us with a problem, where we have to choose between pulling out and voting at the risk of loss, or not voting on a topic that we would actually care about. On a macro scale, the setup is forcing us to choose between either a stable pool or using the tokens for their intended purpose.
I believe this problem is quite substantial as ideally we would be doing both. the pools are what gives uniswap its title as the top dex out there and the governance is a great leap forward, yet the UNI coin in effect is incompatible with the platform’s own core defining feature.
allow us to stake our LP tokens in a voting contract which returns us some sort of IOU token useful for votes and delegation, conservatively representing our share in the UNI pool (like, factoring in slippage by calculating our pool share at 80% of a holder’s UNI share at the time of staking). This way we can actually hold UNI, strengthen the pair and do our part in the governance of uniswap by propsing and casting votes.
This proposal needs thought and development, its easier said than done to just create a vote staking mechanism, not to mention it will probably include updating the current vote contracts. therefore a part of my proposal would be to free up adequate funding from the treasury to compensate the team for time put into making this work.