The Uniswap vote to offer 2nd round of UNI airdrop has failed according to the latest reports that we have in our latest cryptocurrency news.
Uniswap’s proposal to airdrop UNI tokens to users of proxy applications like Dharma and Opyn failed. The voting ended on October 31 at 4:00 hours EST. The Uniswap vote ended in defeat for the second airdrop of Uni tokens. less than 4% of UNI token holders voted but failed to establish a quorum. The platform introduced the UNI governance token and airdropped $150 million tokens to the past Uniswap users. The second governance vote on Uniswap aimed to extend the airdrop to proxy applications that use the exchange via a software extension. These include applications like Opyn, Furucombo, Dharma, and Monolith.
Despite standing in favor, the vote was defeated as only 38.8 million votes were cast which falls below the necessary 40 million to establish a quorum. The proposals can be introduced by holders with more than 1%of the total supply and at least 4% of the token holders have to vote. The total amount that was designated for the new airdrop was 5,047,600 UNI which is 2.3% of the total circulating supply. The addition of the tokens in the circulation raised fears of price drops because of the dilution and possible selling pressure from the new token holders.
The price of UNI was in a downtrend since the launch along with other Defi tokens as the price fell below the support of $2.62 despite the rise in Uniswap’s total liquidity above $2.5 billion and the recent uptrend in Bitcoin. Uniswap’s total liquidity is also under question as the liquidity mining rewards will expire on November 17 with the liquidity providers on the platform being able to leave once the UNI incentives end.
The community has to decide how to best distribute 43% of UNI token total supply via contributor grants, liquidity mining, community initiatives, and other programs. Maybe the token holders find liquidity mining the best way to distribute the tokens which increases the liquidity of the protocol simultaneously. The governance vote from UNI holders will decide on the further distribution of the tokens.
As reported previously, The Uniswap network fees are still attractive to traders despite the recent UNI price crash due to the turbulence on the market.
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