Uniswap DAO Takes on $6B Treasury Challenge

Uniswap DAO faces a significant challenge with its $6B treasury, mostly in $UNI tokens, lacking diversification and a clear utilization plan.

There is a significant problem with the treasury of the Uniswap DAO which houses assets with a value of approximately $6 billion, the majority of which are $UNI tokens.

Uniswap DAO Establishes UTWG

Despite this enormous value, the Treasury does not have any diversification and does not have a clear plan for successful usage, which raises worries about volatility and underutilization.

Establishing the Uniswap Treasury Working Group (UTWG) is a proposal that has surfaced to solve current issues. Over the course of eight weeks, this group will investigate a variety of Treasury management tactics.

They will speak with industry professionals and explore effective practices from other decentralized autonomous organizations (DAOs) such as Maker, Aave, Lido, and Gnosis.

Understanding the legal ramifications of implementing these plans, particularly the obligations that come with taxes, is one of the most critical issues.

PWe are collaborating with legal professionals to ensure adherence to the regulatory standards. however, the precise implementation of these tactics is contingent upon forming a legislative framework, which may require inviting proposals from service providers.

StableLab and Arana Digital have already appointed two of the four members of the Unified Technology Working Group (UTWG). These individuals have expertise in governance and DeFi networks.

To conduct research and submit deliverables to the DAO, the remaining two members will be elected by a snapshot vote. They will then join WG0 to carry out their duties.

A comprehensive investigation of treasury management initiatives, an examination of case studies from other decentralized autonomous organizations, and an inquiry into prospective legislative frameworks are among the responsibilities.

There is a plan to work together with legal professionals to guarantee compliance. For the UTWG, a budget of $6,000 UNI has been sought and the remuneration system has been established at an hourly rate of $200, which is identical to the compensation structure of the Accountability Committee.

Following the completion of an on-chain vote, WG0 will receive retroactive compensation based on the number of hours they have contributed to the project.

Although the UTWG intends to provide viable choices for treasury management, the execution of these options is contingent upon the establishment of a legal framework.

In the plan that has been offered, the alternatives will be presented as a Request for Comments/Proposals (RFC/RFP), allowing Treasury managers to present their proposed services.

After evaluating and discussing promising service providers, the decentralized autonomous organization (DAO) will conduct a vote of confidence.

Next, successful candidates will collaborate with the UTWG to implement the proposed measures. As an intermediary between the DAO and service providers, the UTWG will be responsible for ensuring accountability and openness in the relationship.

We emphasize that this approach is flexible, adaptable to the research outcomes, and aims to offer the DAO a range of viable options backed by thorough analysis.

In addition, the live price of Uniswap (UNI) is currently at $12.5757, and the 24-hour trading volume on the cryptocurrency market is currently at $186.9 million.

This information is current as of today. Over the last twenty-four hours, the coin’s value has increased by 0.62%, and the current price range for Uniswap (UNI) is between $12.8717 and $12.5384.

We estimate Uniswap (UNI) to have a current market capitalization of $7.5 billion.