The Uniswap initiative to create a DeFi defense fund is gaining full steam and proponents say that international organizations and governments are considering policies that could halt the innovation, and expand access so let’s read more in our latest crypto news today.
The Uniswap initiative has yet to be put forward as a formal governance proposal and it was launched by token holders to create a $25 million political defense fund for DeFi protocols and it is closer than ever to become a reality. The fund was proposed by Harvard Law Blockchain and FinTech Initiative who want 1 million UNI tokens from the community treasury to prop up a nonprofit that will defend the protocol and DeFi from legal and regulatory threats. The measure passed two votes which were meant to give a sense of the community’s thoughts on the issue. The consensus check vote concluded over the weekend with the majority of the votes in favor.
Vote *against* sending $40m in UNI tokens to lawyers & lobbyists. Proposal doesn’t give tokenholders any influence over policy.
It’s an abuse of the treasury that could also drive down UNI price.
This is a gas-free vote – no cost to you.https://t.co/4FwlCC8m5h
— Chris Blec | DeFi Watch (@ChrisBlec) June 2, 2021
The next step is for the measure’s authors to submit a formal governance proposal that takes into account any feedback. It will even require voters to allocate their tokens before it becomes official. HarvardLawBFI said in an email that it is moving forward with the governance proposal which will be posted in Uniswap governance channels in the next few days. Uniswap is a decentralized exchange governed by users and anyone with UNI tokens can draft and vote on proposals regarding the protocol and how money should be spent. Those with more UNI tokens have a much bigger influence over the votes just like major shareholders in a company.
Decentralized exchanges remove intermediaries to allow peer-to-peer trading and since most run on the Ethereum blockchain, they are difficult to shut down. Governments are looking to apply regulations and combat money laundering and financing of terrorism with the help of Uniswap, as HarvardLawBFI reported:
“Decentralized finance is increasingly under regulatory scrutiny, and we need to defend the ecosystem, its democratizing potential, and its decentralization ideals. Now governments and international organizations are considering policies that may halt the innovation, expanded access, and transparency it enables.”
The group proposed seven members for the Defi Defense Fund like Aave General Counsel Rebecca Rettig, Compound Labs General Counsel Jake Chervinsky, DyDX Trading General Counsel Mark Boiron, Brex CLO Katie Biber, Uniswap Labs CLO Marvin Ammori, Reverie co-founder Larry Sukernik, and World Economic Forum’s Sheila Warren.
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