[Temperature check] Distribute UNI to delegated UNI holder

Background:

There are approximately 181 M UNI in circulation now. Here are some main ways that UNI holders treated their assets:

  • Deposit in money market protocols (Compound etc.)
  • LP on DEXes (Uniswap,Sushiswap etc.)
  • Trade on CEXes
  • Delegated UNI
  • Undelegated UNI

While you deposit your UNI in Compound or LP pools, you will make some profit with different APY based on different level of risk.

notice: The amount of “Delegated UNI” included the votes delegate from the teams and investors.

If you just hold UNI in your wallets, you will take the risk of price drop and have no profit other than the price rise.

Solution:

Distribute UNI to the delegated UNI holders by a 4% APY profit, calculated on UNI.

Pros:

  • Incentive UNI holders to hold their UNI as a governance token and participate in the community autonomous governance.
  • Make UNI a little bit more valuable before transaction fees are distributed to the UNI holders.

Cons:

  • Could be just an interim solution before transaction fees are distributed.

Next step:

Fully discuss this idea with all you guys, and make sure it’s available to be coded.

Link to snapshot:https://snapshot.page/#/uniswap/proposal/QmYbfYYXiAmLwTLanYT7pnVtSjFK5YNMyCQP6gyLNtzaTk

Link to any additional reading:
List of UNI holders : https://etherscan.io/token/0x1f9840a85d5af5bf1d1762f925bdaddc4201f984#balances
Amounts of delegated UNI:https://explore.duneanalytics.com/queries/10201/source#20277

7 Likes

I believe you have a great point. We must provide more incentive for those of us that have held our tokens. We must create a incentive that is valuable and will take away sushiswaps competition and it needs to be done ASAP!! Before the end of the year. Before BTC resets. Maybe a collectible could be awarded each month!!?? I don’t know just idea. But massive airdrops reduces demand. We need another use for the Uni token. Maybe Dharma would agree to a merger?

2 Likes

Incentives should be to incentivize you to do something that is helpful to the protocol, like providing liquidity, voting and so on, not for just holding…

4 Likes

Totally agree. That is why I proposed to incentive UNI holder delegate their votes to someone or themselves. Economically, holders do not have any interests by holding UNI before transition fees distributed.

4 Likes

You are raising a problem that is very important to fix : voting and using the token are strictly separated right now.
I believe we can do better.
Distributing tokens might not be the best solution on the medium term, but right now it could be necessary.
Small twist : only delegated or UNI that vote receive the APY.
What do you think ?

3 Likes

Exactly. The purpose of this proposal is just try to incentive more community members use their UNI as a voting power. And we may also need to make an exclusion list that ensuring LPs controller contracts or others institutions address will not be targeted by this plan. It is purely for individual UNI holders.

2 Likes

I think it’s an interesting twist because if you choose to delegate / vote you can’t provide liquidity or lend the token, so your token has no financial utility.

1 Like

I have provided and currently providing liquidity. With gas fees as high as they are how do you propose to incentivize new users and/or create demand to drive up the value of the Uni token? I am just wandering if we are looking at something for the long term or can we create a short term demand? Which ultimately drives supply and demand? I would like to see a merger or something that creates a unique incentive other then Liquidity, voting, or delegating. I mean seriously what do we have to lose. We need a leader or group who have notoriety that we can trust to Ultimately increase the value!? Obviously, this is just my opinion and I’m not a expert, but understand demand ans supply and our ultimate goal to increase and distribute wealth, while keeping the brand of utmost value.

2 Likes