Uniswap DAO
by Uniswap Labs
Quick Fact
In March 2025, Uniswap DAO approved a $165.5 million funding plan to support the Uniswap Foundation's initiatives, including grants, operational expenses, and liquidity incentives.
Uniswap DAO is the decentralized governance body overseeing the Uniswap Protocol, one of the leading decentralized exchanges (DEXs) in the DeFi ecosystem. Established in September 2020 with the launch of the UNI token, the DAO empowers token holders to propose and vote on changes affecting the protocol's development, treasury management, and broader ecosystem initiatives.
Governance Structure and Processes
Governance within Uniswap DAO is facilitated through a structured proposal process:
Temperature Check: An initial off-chain poll to gauge community interest in a proposal.
Consensus Check: A follow-up discussion incorporating feedback and refining the proposal.
Governance Proposal: A formal on-chain vote requiring a minimum of 1 million UNI delegated to submit and 40 million UNI in affirmative votes to pass.
This process ensures that significant changes to the protocol are deliberated and approved by the community.
Treasury and Funding Initiatives
Uniswap DAO manages a substantial treasury, allocating funds to support the protocol's growth and sustainability. Notable initiatives include:
Uniswap Foundation: Established to support ecosystem development, the Foundation received an initial $20 million grant and, in March 2025, an additional $165.5 million to fund grants, operations, and liquidity incentives over two years.
Mint Function: The DAO possesses a minting function allowing the creation of new UNI tokens, capped at 2% annually, to fund initiatives without relying solely on the existing treasury.
Challenges and Community Dynamics
While Uniswap DAO embodies decentralized governance, it faces challenges such as:
Voting Power Concentration: Studies indicate that a small number of entities hold significant voting power, raising concerns about centralization within the DAO.
Delegate Participation: Efforts like monthly stipends aim to incentivize active participation among delegates, addressing issues of voter apathy and ensuring diverse representation in governance decisions.