The Uniswap Foundation, a non-profit organization dedicated to promoting Uniswap’s growth, has unveiled its financial summary for the second quarter, revealing a lot of cash and stablecoins and not so many UNI tokens.
The report, published on August 7, revealed that the Uniswap foundation holds $36.81 million in cash and stablecoins, alongside a modest reserve of 680,000 UNI tokens.
These cash and stablecoin reserves are earmarked for grant-making and operational purposes, while the UNI tokens are allocated for employee incentives.
The foundation expects these funds to support its activities until the end of 2025, with $26.12 million designated for grants and $10.69 million for operational costs.
Uniswap Approved Over $3.2M in Grants in Q2
During Q2, the Uniswap Foundation approved over $3.2 million in new grants and distributed nearly $2.5 million from previously committed grants.
More recently, the company announced a grant allocation of $379,000 to Panoptic to build the gRHO platform, a v4 Liquidity Interface.
Prior to that, the company announced a $512,000 grant to Unit Zero Labs and Anthias Labs for the Uniswap Community Research Program, designed to drive research into the Uniswap ecosystem and broader DeFi landscape.
By June 30, the total committed grants for the year amounted to $7.55 million, with $5.27 million already disbursed.
Meanwhile, the foundation’s operating expenses for the quarter reached $1.6 million, with 8.2% directed towards advertising and marketing, 47.9% to payroll, and 35.2% to professional fees.
UNISWAP FOUNDATION DETAILS EXPENSE BREAKDOWN IN Q2 REPORT
– The @Uniswap Foundation, committed to transparency, shared its Q2 financials. They hold $36.81M in cash and stablecoins.
Key Details:
– Of the total funds, $26.12M is earmarked for grants. This includes $22.46M for… https://t.co/jxVIJJttI5 pic.twitter.com/u8v3MDOyEh
— BSCN (@BSCNews) August 7, 2024
Community Rejects Proposal to Distribute Revenue to UNI Holders
Earlier this year, the Uniswap community rejected a governance proposal that aimed to introduce changes to the platform’s fee mechanism, including allowing revenue distribution to UNI token holders.
The rejected proposal intended to grant the decentralized autonomous organization (DAO) the authority to modify Uniswap’s fee mechanism, making way for the activation of a highly anticipated Uniswap “fee-switch.”
This mechanism would have enabled the distribution of protocol revenue to UNI token holders.
Just two days prior to the rejection of this proposal, another separate proposal to enable the collection of protocol revenue had passed with nearly unanimous support.
The activation of a fee-switch has been a sought-after goal since Uniswap distributed its UNI token to early adopters in 2020.
GFX Labs, a DeFi-focused research and development firm that co-authored the latest fee switch proposal, had previously introduced a similar proposal last year.
It suggested distributing 10% or 20% of Uniswap revenue from pool fees to token holders.
However, the previous proposal was also met with resistance, as 45.3% of votes were cast against it, while 42.3% supported a 20% fee distribution and 12.3% favored a 10% fee distribution.
Back in February, Uniswap launched a browser sidebar extension along with a limit order placement function and other tools to facilitate cryptocurrency transactions.
The Uniswap Extension introduces a new way to interact with digital assets directly from a browser sidebar, streamlining the process of swapping digital assets, signing transactions, and trading.
The update also included a Limit Orders feature, allowing users to automate buying or selling cryptocurrencies at predetermined prices.
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