The Uniswap DAO Has Voted to Continue Its “treasury Delegation Program”

The Uniswap DAO has voted to continue its “treasury delegation program,” which could allocate up to 18 million UNI tokens — worth approximately $113.4 million

The Uniswap DAO has voted to continue its “treasury delegation program,” which could allocate up to 18 million UNI tokens — worth approximately $113.4 million at current prices — to selected delegates, according to a preliminary governance vote that closed on Tuesday.

The proposal, titled “Continuation of Active Delegate Funding Program,” was tangentially approved by Uniswap (CRYPTO: UNI) token holders. The proposal will move to the onchain voting stage if passed.

What Happened: The proposal was put forth by Tane, a delegate platform that provides voting services for liquidity providers and other members of the Uniswap community.

The proposal comes after Uniswap’s first treasury delegation program — called the “Delegation of UNI to Active but Underrepresented Delegates” — began in December. The idea was to support “active but under-represented delegates” that vote on behalf of UNI token holders.

“This program has been essential to keep the governance healthy and retain the active and capable delegates,” the Tane delegate platform wrote in its proposal, citing data it collected about the performance of its previous funding program.

Tane noted that after the program was initiated, “all delegates participated in all votes, which made the DAO healthier.”

If the new delegate funding program passes, approximately 12 selected delegates will receive 1 million UNI tokens to incentivize their governance participation. An additional 1 million tokens will be given to “top tier” delegates, which are determined by “objective criteria,” including maintaining a minimum 80% voting participation rate over the past three months.

The proposal passed its “temp check” with 60% of voting power in favor and nearly 30% abstaining from participating.

“We believe that this program is crucial to the long-term health of the DAO,” Tane wrote. “We will continue to monitor the program's effectiveness and make adjustments as needed.”

This latest governance conversation comes on the heels of a controversial $165.5 million funding program for Uniswap Foundation, which will fund the non-profit’s operations and a new grants program for Unichain and Uniswap v4 over the next two years.