Proposal: Launching Uniswap v3 on Ronin with co-incentives (Snapshot)
Vote: DO NOT DEPLOY INCENTIVES
Rationale: We are voting against this proposal, consistent with our position on similar past proposals, and for the following reasons:
- First, as a principle (except for very particular and selective cases), and especially at a time when Uniswap is prioritizing and promoting Unichain, we are against allocating temporary incentives to generate traction in others chains. Evidence shows that TVL tends to grow while incentives are active but quickly returns to pre-incentive levels once they end, as capital moves on to farm elsewhere. This policy therefore leaves no lasting benefit in terms of user growth and ends up being a waste of funds with no sustainable outcome.
- Second, we believe that the requested $500k in UNI is far above what comparable networks to Ronin have received, as well as above Uniswap’s own deployment guidelines: new or smaller networks typically request between $125k and $250k, while larger, established networks may receive $500. In this case, the requested amount appears excessive.
- Third, according to DeFiLlama, Ronin’s metrics are relatively small: DeFi TVL of $56.4M, stablecoin market cap of $5.7M, and 24h DEX volume of $7.44M. The requested incentives would represent nearly 1% of Ronin’s Total DeFi TVL and nearly 10% of the total stablecoin supply on the network, which we find disproportionate relative to the size of the chain.
While, as stated, we are principally against allocating incentives in this way, we could reconsider if the requested amount were significantly reduced between 125k and $250k.