Uniswap Creator Crowdsources Governance Ideas as Treasury Hits $500 Million Worth of UNI
Uniswap's DeFi dominance continues as it now has $500 million worth of tokens in its governance treasury.
The growth of the decentralized finance (DeFi) space has benefited most of its top players. Uniswap, one of the largest decentralized exchanges (DEX), has increased in so much value that its creator is now crowdsourcing opinions on moving forward.
Earlier this week, Hayden Adams, the Uniswap DEX creator, took to Twitter to source feedback on how the exchange could spend some of its liquidity. In his tweet, Adams confirmed that Uniswap now has $500 million in its governance treasury and will be looking to put some of that money to good use.
Many have given suggestions concerning what the DEX could do with such money, with commenters dreaming big at Adams' request. Bruno Skvorc, a writer and the Technical Educator at the Web 3 Foundation, suggested that the exchange could build a portal for developers to access tutorials, documents, and software development kits that teach them how to integrate and interact with Uniswap.
The proposal could be helpful since the Defi space is yet to reach critical mass and become as mainstream as traditional cryptocurrencies. One of the primary reasons is unfamiliarity, and education is perhaps the best way to combat the problem.
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Another Twitter user suggested that the DEX could simply burn 90 percent of UNI tokens available, effectively reducing the number in circulation and possibly increasing the token's value. From there, Uniwap could focus on creating a strong user base and allocate about 10 percent of the governance tokens to funding open-source tools and plug-ins that would be compatible with the UNI ecosystem. The user added,
“Could also use the treasury to accumulate the majority of SUSHI / 1INCH / BAL or another target that you could buy a significant % of voting shares and force a governance vote to merge protocols.”
Cihan Oztunc, a product manager at the New York Stock Exchange, also focused on development. In his suggestion, he asked that the DEX could launch a venture capital subsidiary to invest part of its governance treasury into promising crypto projects that it could integrate into its ecosystem and provide more value for users.
Whatever the DEX chooses to do, it appears to be readying itself for an even more impressive 2021. The year began pretty well for DeFi protocols, with total assets locked hitting an all-time high of $24.85 billion.
Since December, UNI has risen by almost 200 percent, but it isn't the only blue-chip DeFi asset on the rise. Tokens like AAVE and SUSHI are also trading up, hitting triple-digit growth since last month. Despite the traditional market cooling a bit, DeFi tokens continue to surge.