Uniswap Foundation Seeks $62.37M in Second Funding Tranche

The Uniswap Foundation has formally requested a second tranche of $62.37M in funding, according to a proposal posted on the Uniswap Governance Forum on September 27, 2023. This request is part of a two-tranche funding strategy that was approved last year, initially securing $74M for the foundation. The latest proposal aims to fuel the foundation’s ongoing efforts in ecosystem development, governance, and innovation.

Financial Overview

The foundation disclosed that it had awarded $4.8M in grants across five categories over the past year. Operational expenses amounted to $3.15M, largely in line with initial projections. The foundation also revealed that it holds 452,534 UNI tokens for employee vesting, valued at approximately $1.9M at current prices. The proposal includes a detailed financial breakdown, including a forecast that anticipates operational capital lasting until Q4 2024.

Achievements and Future Plans

The Uniswap Foundation highlighted its role in launching Oku Trade, a pro-trader interface, and Oku API, which provides comprehensive real-time historical data across pools, swaps, and positions. The foundation also mentioned its partnership with Gauntlet, focused on R&D to optimize incentive programs and fee design.

In addition to these initiatives, the foundation has been actively involved in research and development activities. They have sponsored hackathons, partnered with academic institutions, and funded research projects aimed at enhancing the Uniswap protocol. These efforts are part of a broader strategy to make Uniswap the default platform for decentralized finance (DeFi) activities.

Governance and Regulatory Compliance

The Uniswap Foundation has also been proactive in governance and regulatory matters. It submitted a comment letter to the SEC’s proposed amendments and has been working on aligning the long-term interests of stakeholders with the protocol. The foundation aims to be transparent and compliant with regulatory requirements to ensure the sustainability of the Uniswap ecosystem.

Community Response and Outlook

A community member, identified as zilayo, questioned the necessity of a $62.37M fund allocation, suggesting that the amount might be excessive for a single year. The member also inquired about the tangible benefits of the grants awarded so far, particularly beyond Oku Trade.

The foundation is expected to address these concerns in an upcoming Twitter Spaces session scheduled for October 2, 2023. This session will provide an opportunity for the community to engage directly with the foundation and seek clarifications on the proposal.

Image source: Shutterstock