Uniswap Vote Delay Shows DeFi Stakeholders Aren't All in It Together

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For those who do not know the story, there is a proposal to “switch fees”, which is a measure that would give those who have UNI a portion of the liquidity providers’ revenues.

"Over the last week, a stakeholder raised a new issue relating to this work that requires additional diligence on our end to fully vet. Due to the immutable nature and sensitivity of our proposed upgrade, we have made the difficult decision to postpone posting this vote,” the foundation wrote on X (formerly Twitter).

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X link ----> https://x.com/UniswapFND/status/1796590521072119927



One of the main concerns is the tax and securities law implications for UniDAO, especially since the SEC is trying to put these decentralized platforms under their radar. However, this is an example of how a DeFi protocol can be subject to the wishes of a smaller group of stakeholders.


Source ---> https://www.coindesk.com/tech/2024/06/03/uniswap-vote-delay-shows-defi-stakeholders-arent-all-in-it-together/


What are your opinions?

[MrSpasybo]

For those who do not know the story, there is a proposal to “switch fees”, which is a measure that would give those who have UNI a portion of the liquidity providers’ revenues.

One of the main concerns is the tax and securities law implications for UniDAO, especially since the SEC is trying to put these decentralized platforms under their radar. However, this is an example of how a DeFi protocol can be subject to the wishes of a smaller group of stakeholders.

I have anticipated that this would be a complex issue because it could directly impact the nature of the UNI token (security or commodity) and the profits of many investors within the UniSwap ecosystem. Sharing revenue for this person means reducing another person's income: UNI token holders gain income while UniSwap liquidity providers receive less income. When liquidity provider income is not truly attractive, many holders may withdraw tokens and seek other DEXs with higher APRs, negatively impacting UniSwap liquidity and exposing it to the risk of huge price slippage.

I believe that UniSwap Labs will need more time to discuss and make the best decision for the future of UniSwap, and even advice from Ethereum Foundation and other DeFi projects is necessary. This also confirms the inefficiency of the DAO on UniSwap: the proposal chosen by the majority may not be the best solution for ecosystem future!