Uniswap Holds Vote on UNI Liquidity Farming Renewal as TVL Dumps

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Uniswap, the world’s top decentralized exchange, has held what it refers to as a ‘temperature check’ poll to determine what will happen with the UNI liquidity farms due to expire today, Nov 17.

The move comes as liquidity on the protocol slumps ahead of the closure of its four UNI mining pools. The two-month mining program distributed over 20 million UNI tokens to DeFi farmers working out to 2.5 million tokens per pool per month.

The poll asked the community whether Uniswap should distribute the UNI liquidity to farmers as a preliminary vote on further extending incentives.

If the ‘temperature check’ passes with a minimum of 25,000 UNI, a second consensus vote will be posted to finalize the details of the proposal. This was explained by DeFi Rate’s Cooper Turley, who made the proposal along with community member ‘Monet Supply.’

“The goal of this proposal is to ‘maintain the status quo’, using reduced incentives as a means to continue distribution as we look to optimize allocations in the medium term.”

The second vote will be on the distribution of UNI for an additional two months. The distribution will go to the same four pools, but at half the rate of the genesis distribution. This works out to 1.25 million UNI per month to each of the pools.

At the time of press, there was over 60% voting for the proposal and 32% against it, meaning that the majority wants to continue farming.