In an announcement dated September 27th, the Uniswap Foundation has requested an on-chain vote to approve the second installment of $74 million for Uniswap. This second installment is estimated to be worth $62 million with a 10% buffer for price fluctuations, and it will be determined through an on-chain vote on October 4th. If approved, these funds will be utilized to support Uniswap’s operations and research grants.
Uniswap Foundation and the DEX Ecosystem
The Uniswap Foundation is an organization that supports the development of the DEX world. It has undertaken crucial tasks such as incentivizing Uniswap stakeholders, growing key protocol metrics, and paving the way for innovative solutions. The success of Uniswap relies on the contributions of organizations like these.
Developers are planning to create a software development kit for Uniswap V4, the future version of Uniswap, and support this new release. In pursuit of this goal, developers have already received the first installment of $17.3 million. However, the Uniswap Foundation team has stated that the funding request has been split in two, and they want to allow more time for registering their legal entity, and obtaining nonprofit 501(c)4 status from the Internal Revenue Service before receiving a larger lump sum.
Uniswap Foundation’s Sustained Success
In the past 12 months, the Uniswap Foundation has disclosed capital losses of $1.29 million due to market downturns between the total research grants of $4.8 million, operational expenses of $3.15 million, and the initial governance proposal for Uniswap (UNI) tokens. This demonstrates the Uniswap Foundation’s commitment despite the challenges faced by the DEX ecosystem.
What Lies Ahead?
Developers note that the Uniswap Foundation has $53.2 million in grant capital to distribute. The plan is to distribute between $10-15 million annually, with the annual distribution expected to increase over time. This could be a significant resource to support the future growth and development of Uniswap.