Uniswap Foundation hopes to raise $62 million more.

Uniswap, the decentralized exchange (DEX), is currently soliciting on-chain votes to secure approval for the release of its second tranche of funding amounting to $74 million for the Uniswap Foundation’s development endeavors.

According to the announcement dated September 27th, this second funding tranche, bolstered by a 10% price volatility buffer, carries an estimated value of $62 million. Its fate will be determined through an on-chain vote scheduled for October 4th. If ratified, these funds will be earmarked for operational enhancements and research grants. The Uniswap Foundation’s mission encompasses nurturing core protocol metrics, nurturing a conduit for innovation, and aligning incentives among stakeholders of this popular DEX.

The development team elucidated their plans for the forthcoming year, which include the creation of a software development kit tailored for Uniswap v4 and support for its subsequent migration. They’ve already secured a substantial $17.3 million in the initial tranche to fund this ambitious initiative. The Uniswap Foundation team explained that the division of funding into two tranches allowed them ample time to establish their legal entity and obtain the nonprofit 501(c)4 status from the Internal Revenue Service. This milestone was achieved in the spring, preceding the receipt of the larger lump sum payment.

In the past year, the Uniswap Foundation disclosed that they disbursed a total of $4.8 million in research grants, allocated $3.15 million for operational purposes, and incurred a $1.29 million loss due to the market decline in UNI tokens between the initial governance proposal and the fund reception. Developers articulated their intention to dispense the remaining $53.2 million in grants capital. Their plan entails an annual disbursement of $10-$15 million, with the yearly amount increasing progressively over time.”