DeFi

Uniswap vote delay shows DeFi stakeholders are not all in the same boat

Published

8 months ago

3 June, 2024

Uniswap vote delay shows DeFi stakeholders are not all in the same boat

Friday, the Uniswap Foundation announcement this delayed a key vote on whether to upgrade the protocol’s governance structure and fee mechanism to better reward holders of the UNI governance token. Nonprofit cited ‘stakeholder’ concerns thought having been an equity investor in the organization behind the largest decentralized exchange based on Ethereum.

Note: The opinions expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates.

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“Over the past week, a stakeholder raised a new issue related to this work that requires additional diligence on our part for a full review. Due to the immutable and sensitive nature of the proposed upgrade, we have made the difficult decision to postpone the publication of this vote,” the Foundation. written the (formerly Twitter).

Although the foundation said the decision was “unexpected” and apologized for the situation, it is far from the first delay in a vote on whether to initiate the “fee change” that would direct a modest amount of protocol trading fees towards token holders. This is also far from the only time the interests of token holders appear to be at odds with those of other Uniswap “stakeholders.”

“We will keep the community informed of any significant changes and will update you all once we are more certain of future timelines,” the foundation added.

Uniswap issued the UNI token following “DeFi Summer” in 2020 to ward off what was known as a “vampire attack” from Sushiswap, which launched with the SUSHI governance token and quickly began attracting liquidity. Sushiswap was considered relatively more community-aligned given that it was run by a DAO and directed trading fees towards token holders.

Uniswap version 2 contained code that would split the 0.3% of trading fees paid to liquidity providers (or those who contribute tokens to trade on the decentralized exchange), with 0.25% going to LPs and the remaining 0.05% to LPs. UNI token holders. But the “fee switch” was never activated.

Discussions have resumed on enabling the fee switch with the launch of Uniswap V3. GFX Labs, maker of Oku, a front-end for Uniswap, proposed a plan This would test the distribution of protocol fees across a few pools on Uniswap V2 that have received a lot of attention. But the talks ultimately broke down, in part due to concerns that activation could drive LPs and liquidity away from the platform, as well as legal fears.

One of the main concerns at the time was that the fee change could have tax and securities law implications for UniDAO, given that it would essentially pay a sort of income-based dividend to holders of tokens.

It is unclear what concerns the Uniswap Foundation was addressing in deciding to delay the vote again. Gabriel Shapiro, a prominent crypto legal expert, wrote that this is another example of a DeFi protocol treating token holders like “second class” citizens whose desires are subordinate to a smaller group of stakeholders.

Similar arguments were made late last year when Uniswap Labs imposed 0.15% trading fee on its front-end website and portfolio – this was the first time the development group had sought to directly monetize its work. The fees only applied to products managed by Uniswap Labs, not the exchange protocol itself, but came after a $165 million increase.

There is no reason to be completely cynical here and suggest that the hard-coded fee change to reward UNI token holders will never be implemented. Uniswap Labs and UNI token holders are separate entities with their own interests; ideally both would be aligned to do what’s best for the protocol itself

But if there’s a lesson to be learned from DeFi, it’s that token holders don’t always have the final say.

Fuente

Related Topics:Challenge Costs Newsletters Notice The knot Uniswap Uniswap Foundation

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DeFi

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Published

6 months ago

29 July, 2024

CoinFlix Staff

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Bonk and Pepe appear set to net new investors 10x to 100x returns over the next 12 months. However, cryptocurrencies in the DeFi play-to-earn gaming sector could offer even greater returns. As August approaches, Rollblock is emerging as a standout DeFi play-to-earn gem with the potential to 100x-1000x gains in the fourth quarter and beyond.

The project features an innovative revenue sharing model and exceptional accessibility, attracting players and investors. Additionally, Rollblock’s extensive game library of over 150 titles and enhanced sports betting are further driving excitement for the platform. Cryptocurrency analysts are expecting a sudden surge in demand. 800% a push for Rollblock from the beginning of September.

Bonk remains strong despite market fluctuations

While most well-known cryptocurrencies struggled throughout July, Bonk remained strong. As one of the highest-grossing meme cryptocurrencies of 2024, Bonk rose over 24% in July, while most cryptocurrencies experienced negative fluctuations.

Investors looking to add a relatively safe memecoin to their portfolio should consider Bonk. While Bonk is unlikely to generate explosive gains of 250x to 1,000x from here on out, Bonk could still theoretically provide returns in the 20x to 100x range.

Pepe should see a big rise in the next bull run

Alongside Bonk, Pepe has yet to go through a bull run. This means that there are still substantial gains to be made from Pepe over the next 12 months.

Pepe is down 4% in 30 days, but that shouldn’t worry Pepe investors in 2024. Experts believe Pepe’s best days are still ahead, with crypto analysts predicting a 10x to 50x surge in the next election cycle around November.

In the long term, Pepe could surpass the 100x mark for today’s investors. However, Pepe is a memecoin, and one should exercise caution when investing in purely speculative assets that have no utility.

Rollblock’s Unprecedented Hype Potential Could Push It Past 100x Valuation in Q4

Rollblock is a GambleFi Play-to-Earn token that integrates centralized and decentralized gambling on a single platform. By allowing players to earn rewards through active participation and gameplay, the platform creates a compelling incentive structure that appeals to both casual and competitive players.

With its cutting-edge blockchain technology, Rollblock offers top-notch security that keeps bets and transactions on the platform secure. The platform’s lack of KYC mandates appeals to both users who value anonymity and security.

Rollblock’s revenue sharing model, which allocates up to 30% of casino revenue to RBLK token holders, is a major draw for investors. The model involves burning half of the repurchased tokens and distributing the other half to stakers, increasing the token’s value and encouraging long-term investment.

The platform is also constantly evolving thanks to user feedback which has enabled updates such as the upcoming sports betting feature within the platform’s casino. This addition will complement Rollblock’s extensive game library of over 150 titles, ranging from traditional poker to innovative blockchain-based games.

RBLK is expected to emerge as one of the leading DeFi tokens in 2024. With a price of $0.0172 with impressive growth potential and over 140 million tokens sold recently, Rollblock is on track to enter the top 100 cryptocurrencies by Q4, making today a lucrative time to buy RBLK tokens.

Discover the exciting opportunities of the Rollblock (RBLK) presale today!

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DeFi

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Published

6 months ago

29 July, 2024

CoinFlix Staff

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Veteran cryptocurrency investor Arthur Cheong believes the digital asset sector offers long-term holders a golden opportunity.

Cheong, the founder of DeFiance Capital, tell His 171,700 followers on social media platform X indicate that he believes decentralized finance (DeFi) is hugely undervalued.

According to Cheong, DeFi projects are innovating at a rapid pace and leaving traditional financial (TradFi) companies in the dust.

“It’s been a long time since I’ve been this excited about the risk/reward and potential upside of DeFi. This is probably the most misjudged moment since the pre-DeFi summer of 2020, with extremely promising prospects.

I see opportunities not only in OG (original) DeFi, but also in some newer projects that are evolving rapidly and growing at a pace that fintech startups will do anything to match.

The veteran investor also believes that crypto is now here to stay following recent launch from the Ethereum spot market (ETH) exchange-traded funds (ETFs) last week.

“Overall, the floodgates are open and there is no turning back. TradFi asset managers will continue to launch new crypto products because, guess what: there is huge demand for them!”

I expect them to launch actively managed crypto ETFs [in the] coming years. ”

Earlier this month, Cheong laid that it might be a bad strategy for cryptocurrencies to seek mass adoption, believing that digital assets are designed to disrupt several key financial sectors.

“I think we should accept that cryptocurrencies may not be suited for mass adoption like Web2, but rather are optimized for some narrow but very high-impact use cases like stateless global money, cross-border payments, and decentralized finance.

Chasing mass adoption of normies may be chasing the wrong Grail from the start.

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