Uniswap Governance Likely To Determine DeFi

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Uniswap’s first governance vote has become highly contentious as concerns over centralization are raised. They may not be the only risks posed, however, as industry observers and analysts begin to dig up more dirt.

Uniswap’s opening governance vote has been concluded before the end of the voting period as the final ‘whale account’ has voted in favor of Dharma’s proposal to reduce the number of votes required for a quorum.

This effectively consolidates governance power to just a few addresses holding the majority of UNI tokens. Three addresses holding the most tokens made up almost all of the 39.5 million votes for the proposal, while almost 700k voted against it.

Chris Blec from DeFi Watch has been highly vocal about the voting process which erodes any notion of decentralization the protocol has:

As reported by BeInCrypto, the successful passing of this vote grants Dharma and Gauntlet nearly all of the power providing they both vote on the same side for future governance decisions.