Assuming the contribution is given in $UNI, how should Nomic Labs transfer from $UNI to a more stable asset (if at all)? Will this be done all at one, or more slowly to less affect the price of $UNI? Or will Nomic Labs simply deposit $UNI into Aave/Compound and borrow off of the sum? This needs to be discussed in further detail.
If the proposal goes through, Uniswap will be a significant donor and will be treated as such. In our eyes we’re incentive-aligned to care for the relationship since an angry community likely means no more funding in the future, and the outcomes with a major DAO like Uniswap will impact every other DAO relationship.
Having said that, we do need to sell the UNI for risk management reasons. Still, we’ll do everything we can to minimize impact and avoid causing stress to the community. We’ll engage an OTC desk specializing in lower liquidity pairs to execute the sale, which will distribute the impact across many liquidity pools, over time, rather than a one-off market sell order in a single liquidity pool. The length of the period for the execution will depend on the OTC desk’s assessment of liquidity at the time of the sale, but I assume it’d be many relatively small chunks over the course of a few weeks.