Benzinga - A “temperature check” in the Uniswap DAO has shown a strong inclination for a proposed $12 million investment in decentralized exchange Ekubo.
The possible investment would be in return for a 20% share in a potential governance token for Ekubo, reported The Block.
Uniswap DAO is contemplating the allocation of 3 million UNI ($12 million) from its treasury to Ekubo.
“This is an essential step in the decentralization of Uniswap protocol development, effectively including the Ekubo team as core developers,” said Ekubo founder Moody Salem in the proposal.
The vote on Snapshot showed 21 million UNI tokens in favor and 12 million against, indicating that 63% of the tokens voted were in support. Almost the entire vote (97%) was dominated by five token holders.
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Salem, a former lead engineer at Uniswap and Ekubo’s founder, stated that if the proposal is approved, the liquid tokens will fund Ekubo’s operations and contribute to the Uniswap protocol.
“Much of the work will focus on delivering public goods to the Starknet ecosystem,” he added.
Upon approval of the proposal, Ekubo plans to create a governance token within a month, with 20% of its supply going to the Uniswap DAO’s treasury.
However, the proposal faced criticism with many votes against it. Doo Wan Nam, co-founder of StableLab, emphasized the need for governance and accountability should the proposal pass. Wintermute, a crypto market making firm, also voiced its opposition due to the proposed token’s $60 million valuation.
Nevertheless, the final decision is yet to be made, and the Uniswap DAO community awaits the outcome of the proper vote.
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