Despite being one of the most prominent DeFi protocols, Uniswap’s outstanding voting power does not necessarily translate into active governance participation. In fact, many top delegates with considerable voting power have less than 50% vote participation rate, and some even as low as 10% or 0%. While there have been previous campaigns to encourage delegation by large UNI holders, we have seen that further delegate accountability is needed as many of those who received large delegations barely participated, if at all.
In healthy governance environments, proactive delegates wield significant voting power, ensuring malicious votes are prevented and quorum requirements are met.
Therefore, this proposal requests the Uniswap Foundation delegate 2.5 million UNI to each of 3 active yet underrepresented delegates selected based on the criteria outlined below. To ensure further accountability, each delegate must maintain a 90% participation rate at a minimum (as explained further in Participation Requirements) or is subject to undelegation via the Franchiser contract explained below.
Landscape of Uniswap Governance
Despite numerous improvements to Uniswap’s governance, there are still several areas that require further improvement. One prominent area is governance participation, which has witnessed a downward trend compared to late 2022 and early 2023.
Another issue is many large delegates are now inactive, and the delegators who entrusted them with delegation are either unaware about this inactivity or simply do not care. For example, there is currently several delegates with more than 2.5 million UNI delegated who never even voted onchain according to Tally, see the screenshot below.
Therefore, further distributing governance power to active but underrepresented delegates is a positive step forward ensuring governance is more active, resilient, and robust.
- Must have voted on 90% (or more) of proposals (minus the proposals that were canceled) over the last 3 months (as of the date when this proposal is passed on Snapshot). This includes both Snapshot and Onchain proposals (Tally or Agora)
- Must have actively participated in proposal voting for more than 3 months and have a Delegate Platform on Uniswap Forum under Delegation Pitch
- Meets the above Participation Requirements
- Voting Power is less than 2.5 million UNI (as of the date when this proposal is passed on Snapshot).
- Should this proposal pass on Snapshot, a 5-day period will begin where delegates that meet the above criterias are encouraged to post their application to be considered for delegation. In cases where there are more than three qualified applicants, there will be an additional Snapshot vote to determine the top three. Once three or fewer applicants are selected (in case there are not enough delegates that meet the criteria), it will proceed to an onchain vote.
-Should the onchain vote be approved but there are two or fewer qualified applicants, there will be a subsequent application period and Snapshot vote one month after the initial vote to fill the remaining available recipients (for example, if there were two qualified in the onchain that passed. The subsequent voting will have one). The criteria then would be 90% of voting (minus the proposals that were canceled) on both Snapshot and onchain (Tally or Agora) for Uniswap votes for the past 3 months as of the date when the new application is live.
-Should the onchain vote be approved and there are three qualified applicants but one or more of them are disqualified in the future due to their low vote participation, there will be a new application and snapshot vote one month after to give the opportunity to another delegate(if out of 3, one is removed, the application and vote will happen to fill one available recipient).
-As mentioned by @eek637 in a previous proposal seeking UNI delegation, there will be deployment of three new Franchiser contracts, each one funded with 2.5M UNI (7.5M UNI total). The owner of these Franchiser instance’s would be the Timelock, while the three delegates chosen through the voting process outlined above can act as the delegatees.