The Uniswap Foundation has decided to postpone the highly anticipated vote that would have moved the decentralized exchange closer to activating its “fee switch” and giving incentives to UNI token holders who staked and delegated their tokens.
This decision to delay the vote according to the foundation was due to an issue raised by one of the stakeholders regarding the proposal, which led to further scrutiny by the foundation.
In the announcement made on the Uniswap DAO governance forum, Erin Koen, the lead official governing the foundation asserted that thorough vetting is important because of how inalterable and sensitive this proposed upgrade is.
“Over the last week, a stakeholder raised a new issue relating to this work that requires additional diligence on our end to fully vet.,” said Koen. However, he did not cite either stakeholder or the issue raised
Since then, after it was announced that the vote was being delayed, the value of Uniswap’s UNI token decreased significantly as it fell more than 7% to $9.95. It had previously surged by 20% ahead of voting that promised major rewards for UNI investors.
Image Source: CoinMarketCap
For years, the Uniswap DAO has been discussing the activation of a fee switch. Several previous proposals have not moved forward mostly because of the fear of US securities laws violations. The most current proposal, written by Uniswap Foundation was designed to address these concerns and saw support from the community during an advisory vote known as a “temperature check” held earlier this year.
In response to the announcement, Dan Robinson, a partner at crypto venture-capital firm Paradigm, criticized the decision made by Uniswap foundation to delay such voting, calling it a retreat under pressure from another unnamed venture-capital firm – some members in the crypto community are unhappy about this.
“It’s disappointing to see a large VC try to bully the token governance process and delay community proposals at the last minute in order to advance their own pet projects,” Robinson wrote in a tweet
However, the crypto space is still waiting for further updates on the fee switch proposal and how it may affect UNI token holders from none other than the Uniswap Foundation.
Also Read: Metaplex & Mutant Labs Launch DeFi Framework on Solana
