Uniswap Foundation: Summary 2023 Financials

I am the new Head of Finance at the Uniswap Foundation and in the spirit of providing financial transparency to the community, the Uniswap Foundation is excited to commence a regular cadence of financial updates starting with the unaudited summary results of operations for the year ended December 31, 2023.

Assets on Hand and Funds Usage

At December 31, 2023 we had $45.26 million in USD and stables on hand and UNI 0.78 million (in UNI). The fiat (USD) cash and stables are to be used for grantmaking and operating activities and the UNI for employee token awards. The expected runway was through the end of 2025 and was earmarked as follows.

Grants commitments and liquidity mining: $30 million to be disbursed in 2024 and 2025. $1.5 Million was reserved for grants committed in prior years, to be disbursed. Remaining $13.75 million was to be used to fund operations expenses through the end of 2025.

2023 Grants Committed and Disbursed

In 2023, the Foundation committed $2.93 million in new grants and disbursed $3.16 million in committed grants.*

In addition, $0.36 million was disbursed for past UGP grants and recognized as committed in 2023. UGP grants were committed prior to the formation of the foundation and assumed by the Foundation at inception.

2023 commitments saw a funding shift away from Protocol Growth: Interfaces, DevX and Integrations category towards larger commitments to Incentive Programs and R&D: Protocol as well as additional funding for Community Growth, Protocol Growth: Protocol Development and Governance Stewardship. To be noted, the grant strategy was revised in early 2024 and includes updated grant categories. More detail on the updated grants strategy can be found here.

2023 Summary of Activities

In 2023, the Foundation received $43.41 million in contributions from the DAO and spent $3.56 million on operating expenses.*

Payroll expenses included salaries, benefits and taxes. Contract & professional fees included legal, accounting, technical audit, and consultant expenses. Office expenses included internal team events, such as offsites, software, transaction fees and other G&A. External events included conference and external event travel and attendance. Advertising & marketing included web design, agency fees, TLDR event hosting. Insurance: directors and officers insurance. Hackathons: hackathon events sponsorship and related travel expenses.

In the following financial update post, we will share a snapshot of 1st quarter 2024 results, including grants commitments and disbursements, operating expenses and summary of financial position.

8 Likes

Thank you for posting, @nataliara! Excited to share this with the community.

1 Like

so if my maths are right, ratio of operating expenses to grants disbursed is $3.56 : $3.16 ie 53%:47% ā€¦ if you strip out the one-off startup costs ā€¦ what does it look like going forward? Or with the $13.75M remaining you want to double down (the ~2year til 2025 end)?

1 Like

Ops expenses are expected to ramp up - with $13.75M spend projected through the end of 2025 - in support of $31.5M in grants. Please note, ops expenses also include community building and other programmatic support.

OK ā€¦ so correct me if wrong

13.75M spend projected through the end of 2025 - in support of $31.5M in grants.

so instead of keeping the Ops budget steady at 2x$3.56 which would put an extra $6.63M for grantees ~20%, you decided to up allocation to external events (eg hackathons + community building)? Perhaps Iā€™m just stupid but why in-source 100% and not ā€¦ say do matching 1:1 grant with external outsource and get twice the bang for buck? I guess people in LatAm or SEasia are too poor to match your sagacious decision.

Glad to see more transparency from the foundation.

@drllau_LexDAO brings some interesting points.

what is the expected plan of action once the foundation runs out of its current runway?

We are planning to raise additional funds at the end of this year.

Has there been any review of the existing grantees? Just clicking on a few items

  • a newsletter with less dozen follower that ran for 10 issues and stopped
  • dead link or goes to a generic twitter a/c
  • some publications but no reviews/feedback ā€¦
  • new governance frontend but no uptake stats
  • courses/bootcamp but no participation stats

If the impact review of grantees has been done elsewhere (site can be outdated) please be so kind to link ā€¦

1 Like

Thank you for your review of our funded grants and feedback.

The funded grants page on our website showcases a comprehensive collection of initiatives funded by the program, spanning from before the official establishment of the Uniswap Foundation. Some of these projects are from our earliest days and were short-term oriented or experimental.

Following a strategic pivot earlier this year we have shifted our focus to larger, longer term oriented grants. Details and updates on these impactful projects are available in our Ecosystem Impact Report published in August, with additional information accessible on our Get Involved page.

Please note that we are currently redesigning our website to enhance the presentation and regular updating of our grants & get involved page. Additionally, we are committed to publishing more Ecosystem Impact Reports, ensuring our community remains well-informed about the ongoing benefits of our grant programs.

Thank you for your engagement and for helping us improve. Your feedback is valuable in ensuring the effectiveness and accountability of our grants program.

1 Like