The price of Uniswap’s governance token UNI is not looking good. Dropping another 12% in the past 24 hours, UNI is currently trading at $2.30, having fallen 46% in the past 30 days. Since hitting its all-time high, soon after its launch, UNI continues to hit new lows.
Meanwhile, the community is still concerned about more pain ahead for the token as they face the question of should those users who interacted with Uniswap through a third-party interface be entitled to the free UNI tokens.
After the first governance voting on Uniswap had an epic failure despite 98% of the votes cast in favor of the proposed change, because of the required 40 million votes for it to be successful, fell short by about 400k, it is ready for the second one.
This proposal would distribute 400 UNI to 12,619 distinct addresses who interacted with Uniswap via a proxy contract.
As of writing, over 28 million UNI has been voted in favor of the proposal, while 1.26 million have voted against. The vote closes on Oct. 31 at 13:23 GMT+5:30.
If the proposal does not establish a quorum, less than 40 million UNI votes, this one will meet the same fate as the first one.
In case the proposal succeeds, that means about $40 million UNI would be redistributed in its phase one.
While these users will feel left out, it will be hard to differentiate between the actual user and bots. Those against this will argue that it would put further pressure on the UNI price while not creating any wealth for UNI holders.
Even the failure of first governance voting resulted in an immediate drop in UNI price, and with already DeFi tokens on the slide, the token can see further losses.
However, unlike the price action, the dominance of this DeFi protocol is on an incline. Currently, it accounts for 24.08% of the DeFi market share thanks to its ever-increasing TVL (total value locked).
From $400 million on Sept. 10, Uniswap’s TVL increased to a new all-time high of $2.77 billion on Wednesday Previously crossing the $2 billion mark at the end of September.
The popular decentralized exchange is the DEX sector leader that has expected annual earnings of $380 million. Jeff Doman, CIO at Arca said,
“As soon as market participants start giving UNI the same benefit of the doubt that they give ETH in terms of future value accrual, UNI will be viewed as the single cheapest asset in all of digital assets and certainly all of DeFi.”