[Discussion] Good Governance Practices

Governance-Meta
1

Hi Uniswap fam,

Given that UNI governance is still relatively new, I think that it would be productive to think about proposal procedures and standards before we make changes to the protocol.

Uniswap borrows governance functionality from COMP and the Compound community, and I think this reference on good governance from Robert Leshner is a great jumping off point:

TL;DR

Proposals should be submitted in the forums and discussed by the community before going on chain.

Technical changes should be publicly vetted.

Proposals should address 1 change at a time.

Please share any other ideas you have about good governance, proposal etiquette, moderation, etc!

12 Likes
2

What does comp has to do with uniswap?

3 Likes
3

nothing. @monet-supply is just trying to show an example of how governance works in other protocols.

3 Likes
4

Great reference would be great to see Uni go down a similar process for their own governance starting with discussion in a single forum post moving up towards testing and audit and finally proposal.

Hopefully this example will show people making a proposal shouldn’t be a 2 second thing where you click a few buttons and that’s it. Proposals take time and require hard thinking, open discussion and dissection and auditing both by knowledgeable community members and then a trusted 3rd party before finally reaching the proposal stage at which point the community vote if this is the change they really want (hopefully by the time the final stage is reached the community would have known its what they want)

4 Likes
5

Title: Eliminating Gas Fees for Governance Voting & Rewarding Active Participants

Introduction:
Governance is the backbone of Uniswap’s decentralized ecosystem, allowing UNI holders to shape the protocol’s future. However, the current system requires voters to pay gas fees, which creates a barrier to participation. To ensure Uniswap’s governance remains truly decentralized and inclusive, we must explore ways to eliminate these costs while also incentivizing active engagement through rewards and unique opportunities.

Key Issues:

  1. Gas Fees Discourage Participation

    • Many users are reluctant to vote due to the Ethereum network gas costs associated with on-chain governance.
    • This limits decision-making power to larger holders who can afford to pay these fees, reducing governance diversity.

  2. Lack of Incentives for Governance Participation

    • Delegates and voters spend time reviewing proposals, yet there is no direct reward for their effort.
    • Other protocols offer governance incentives, making participation more attractive.

Proposed Solutions:

  1. Implement Gas-Free Voting Mechanisms

    • Explore Layer 2 solutions (Optimism, Arbitrum) for voting to reduce or eliminate gas fees.
    • Utilize off-chain voting with on-chain execution (Snapshot + Layer 2 settlements) to make governance cost-effective.

  2. Introduce a Voter Incentive Program

    • Reward active participants with a small amount of UNI or a governance-specific token for their votes.
    • Create a system that tracks participation and rewards long-term engagement in governance decisions.
    • Offer special incentives, such as NFT creation opportunities, free DeFi app memberships, or access to governance-exclusive features as a reward for participation.

  3. Delegate Gas Cost Coverage for Governance

    • Use a portion of the Uniswap treasury to subsidize gas fees for voting on major governance proposals.
    • Implement a tiered system where smaller voters receive subsidies to ensure equal access to governance.
    • Introduce a monthly randomized voter reward pool, where 500,000 winners globally receive governance perks, gas-free votes, or other incentives.

Conclusion:
Governance should be accessible, fair, and rewarding for all UNI holders, not just those who can afford gas fees. By implementing gas-free voting, rewards for active participants, and treasury-backed subsidies, Uniswap can set a new standard for decentralized governance.

By flipping the ecosystem, we can create an environment where governance is not just a duty but a rewarding experience—one that fuels engagement and strengthens Uniswap’s leadership in DeFi.

I encourage the community to discuss and refine these ideas so we can make Uniswap governance truly inclusive and decentralized.

:loudspeaker: Discussion & Next Steps

  • What are your thoughts on gas-free voting & voter incentives?
  • How can we structure rewards fairly while preventing governance farming?
  • What Layer 2 or off-chain solutions should Uniswap prioritize?
  • Would a 500,000-person monthly voter rewards system increase participation?

Let’s build a better, more inclusive governance model—together. :rocket: