A total of 39,596,759 voted in favour of a motion to reduce the UNI governance proposal and quorum thresholds but dispute the massive amount of votes, it fell just short of the 40 million vote threshold.
As reported by Cointelegraph, the proposal had been put forward by DeFi platform Dharma which is a major holder of UNI tokens. This was due to lengthy discussions around the ‘high thresholds’ for proposals and quorum (minimum number of members needed) relative to delegated UNI across the ecosystem.
According to Uniswap’s official release on its website, Dharma prepared the proposal which was intended to make governance more accessible to general UNI users while protecting the protocol from ‘unilateral deleterious actors’.
The proposed threshold was 3 million UNI for the submission of a proposal and 30 million UNI for a quorum to be reached. As the image above shows, the proposal fell just short of the 40 million votes needed to pass.
The current parameters for governance change proposals requires entities to hold at least 1% of the delegated supply of UNI tokens. There are currently over 200 million UNI tokens in circulation of the total 1 billion cap, according to data from Coingecko.
For a governance proposal to be passed, there needs to be a 40 million total votes in favour in order for a decision to be passed. This current parameter is fixed to the total supply of UNI, being 1 bln and not correlated to the amount of circulating tokens.
The proposal did have its detractors, one of which being community member David Felton who penned an article on Medium outlining concerns around the proposal from Dharma.
Felton’s concerns were centred around Dharma’s voting power which is directly proportional to the amount of UNI it holds. With 15 million UNI under its control, the platform is already able to put forward various proposals.
“Dharma seeks, through this governance initiative, to lower the quorum such that they could achieve it with only the top two delegates [themselves and gauntlet]; they do this under the pretext that these changes to the governor will allow Uniswap’s governance to function better and allow little guys to participate…” Felton wrote.
The community member added that it might be pertinent to consider a proposal to raise the quorum required to pass a governance vote which correlates to the circulating supply of UNI and not the total supply, which is how the current system works
“Lowering the quorum creates the possibility for situations like the DAO hack where malicious proposals lost investors millions,” Felton added.