Uniswap Considers $12M UNI Investment for a 20% Stake in Ekubo’s Upcoming Governance Token
Uniswap DAO’s New Venture
The Uniswap Decentralized Autonomous Organization (DAO) recently gave a preliminary nod towards a significant investment proposition. They’re considering injecting 3 million UNI (equivalent to $12 million) from their treasury into the decentralized exchange, Ekubo. The catch? A coveted 20% share in Ekubo’s upcoming governance token.
Ekubo and Its Aspirations
Moody Salem, Ekubo’s visionary founder, highlighted the pivotal nature of this potential collaboration. “This aligns seamlessly with our goal to intensify the decentralization process of Uniswap’s protocol development. We’re not just talking investment; we’re talking about amalgamating Ekubo’s prowess into Uniswap’s core development strategy,” he elaborated.
Given Salem’s background as an ex-engineering lead at Uniswap, this partnership seems like a homecoming. His credentials? Being the fifth entrant into Uniswap’s employee ledger and having significant contributions to its codebase.
The Voting Dynamics
The vote dynamics on Snapshot were compelling. 21 million UNI tokens showed support, with 12 million tokens in opposition. A clear majority of 63% favored the proposal. However, an intriguing fact is that just five token holders held a massive 97% of the affirmative vote from a total of over 3,500 votes.
Ekubo’s Future Gameplan
Post-approval, the liquid 3 million tokens will be the lifeblood for Ekubo’s operations. More so, they will bolster contributions to the Uniswap protocol. “Our primary mission is to render indispensable services to the Starknet ecosystem. We aim to establish benchmark standards for tokens, governance, and incentive contracts penned in Cairo. Our vision? Elevating Starknet to match competing Layer 2 solutions,” said Salem.
And there’s more in store! Post the proposal’s green signal, Ekubo aims to roll out its governance token within a month. 20% of its cache will enhance the Uniswap DAO’s treasury. Ekubo, however, will reign supreme over the rest, guiding its potential distribution. An added bonus is the token’s native domicile in Starknet. The proposal also spells a boon for Ekubo in terms of licensing, granting them unbridled access to Uniswap v4.
Ripples of Dissent
However, this partnership has not been devoid of critics. With a chunk of votes against the proposal, there’s palpable skepticism. Doo Wan Nam, from StableLab, opined, “Post this proposal’s approval, Uniswap’s governance must introspect its governance philosophy and accountability.”
Market-making giants, Wintermute and Keyrock, too voiced their reservations. While Wintermute balked at the staggering $60 million token valuation, Keyrock expressed concerns over the proposal’s swift processing timeline.
