Weekly Governance Update

Governance-Meta
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Weekly Update - June 12, 2023

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:hourglass: Key Points

  • Several Requests for Comment threads regarding what to do with Uniswap’s $ARB distribution from the Arbitrum airdrop are active in the forum.

  • Discussions about the fee switch continue in the aftermath of GFX Labs’ Snapshot polls.

:ballot_box: Proposals

  • No new or recent proposals.

:writing_hand: Forum Highlights

  • On June 7th, Uniswap received ~4.4m ARB tokens from the Arbitrum airdrop, prompting Uniswap Foundation governance lead @eek637 to issue a request for proposals from the community on what to do with the proceeds, which are subject to the DAO’s control. As of now, nine proposals have been made for what to do with the $ARB, including:

    • Gamma’s proposal to “distribute at least 1/3 of $ARB airdrop as liquidity incentives.”
    • Gauntlet’s proposal to “instantiate and dynamically optimize a liquidity mining program on Arbitrum using a portion of Uniswap’s $ARB airdrop.”
    • Alastor’s proposal to “establish a UNI-ARB Working Group.”
    • The Uniswap Foundation’s proposal to “send 50% of the ARB airdrop to the Foundation’s multisig.”
    • DefiEdge’s proposal to establish a “liquidity incentivization program.”
    • BrincX’s proposal to “fund the development of DeFi vaults and analytics focused entirely on increasing Uniswap v3 liquidity on the Arbitrum network.”
    • Flashstake’s proposal to “jump-start time-based yield markets for any Uniswap V3 pair through liquidity mining incentives.”
    • Arrakis Finance’s proposal to use $ARB as incentive to bootstrap liquidity on Arbitrum via Arrakis market making products that are built on top of Uniswap V3.
    • 0xPlasma’s proposal to allocate 1/3 of the $ARB “for a gas refund initiative” on Arbitrum and 2/3 to “incentivize liquidity providers.”@eek637 has called for delegates to weigh in with their thoughts on these proposals before any proposers attempt to move their ideas forward to the Temperature Check phase of governance.

  • Gauntlet posted a Liquidity Mining Analysis in the forum, which examines the results of an “incentives experiment in which UNI incentives were distributed to liquidity providers (LPs) of specific Uniswap pools on Optimism.” They concluded that “the results from the Phase 2 Optimism experiment in general support the thesis that a sustained impact can be achieved by liquidity mining through the liquidity → volume bootstrapping mechanism for some pools,” which contradicts existing research pointing to liquidity obtained through these incentives did not stick around.

  • The fee switch discourse continues, albeit less intensely than two weeks ago when GFXLabs’ Snapshot polls were live. GFX Labs has indicated that they will use the results of these three Snapshot polls to inform a formal Temperature Check vote, which has not yet been introduced. On May 31st, a16z - which has thus far opposed turning on a fee switch - signaled that they will provide an update on their research on the topic some time in June.

:newspaper: Stakeholder/Delegate News

:date: Upcoming Events

There are no upcoming events.

:crystal_ball: Upcoming Votes

There are no upcoming votes in the queue.

Quick Gov Links: Governance Overview | Uniswap on Boardroom

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