Uniswap Community Proposes to Distribute UNI to Proxy Contract Users DeFi Rate

Uniswap – the leading DEX – is undergoing it’s first community governance to decide whether or not to issue UNI to pocket niches of proxy contract users.

1/ We’d like to congratulate the @UniswapProtocol team and applaud $UNI‘s distribution, rewarding early users and supporters.

However, the distribution unfortunately excludes a subset of Uniswap users, including Dharma users, due to what we believe was an unintended oversight.

— Dharma (@Dharma_HQ) September 17, 2020

Nadav Hollander,  the Founder and CEO of Dharma, has created a governance proposal to retroactively distribute UNI tokens to the users who have interacted with via proxy contracts used by DEX aggregators and smart wallets.

Outside of Dharma,  platforms like 1inch, Matcha, and Paraswap have reported similar issues. These DEX aggregators received 400 UNI tokens in total, instead of receiving 400 UNI tokens per unique ETH addresses that interacted with Uniswap via proxies addresses before 1st September 2020.

An inclusion criteria was suggested which would clearly establish the excluded wallets, interfaces and aggregators. The aim here is to keep the allocation surgically minimal.

For eligibility,  the projects have to meet the following criterions :-

  1. Prior to September 1st, they exposed a publicly-available user interface either on web or in an integrated mobile application that allowed users to make trades on Uniswap in some capacity. We include DEX aggregators in this definition — UNI holders ultimately get their paycheck from market takers, not makers. Aggregators are fundamentally in the interest of Uniswap’s success.
  2. It must be clearly verifiable that said interface / application was available to users prior to September 1st (e.g. if this is not immediately obvious that this is the case, the burden of proof is on the project for demonstrating, for instance, that an interface can be loaded on Wayback Machine, etc.)
  3. It must be clearly verifiable that said interface / application at the time hooked into a proxy contract calling into Uniswap. Again — if this is not immediately obvious or verifiable, the burden of proof is on the project to demonstrate this.
  4. Finally, the project should provide a list of addresses of affected users. It must be clearly verifiable that those addresses are associated with the proxy contract system previously identified to be associated with the project. Once again, if this is not immediately obvious, the burden of proof lays with the project.

There will be a 24 hour discussion period, after which the proposal will move on to the application period. In this phase, the Dharma team will submit short, public applications on behalf of their users. A handful of questions will be posted which will be discussed/debated for the next 48 hours.

Once the set of projects is decided upon,  the ETH addresses will be verified with the aforementioned inclusion criterion. Finally, the team will compile a merkle root for distribution, will deploy a merkle drop-contract referencing that merkle root, and will initiate a governance proposal to grant approval to said contract with triggering scheduled for October 17th, 2020.

So far, this proposal was met by positive reception from the participants of the governance forum. At present, the proposal is in its discussion phase. Once it concludes,  it will go into an application period, followed by the final submission period. The users of the platforms, who did not receive their UNI tokens, would receive their tokens on October 17th when the first tranche of the community treasury unlocks.

In the interm, it will be fascinating to see how the proposal plays out as those voting to ratify the program would be those who were largetly not affected by this issue.

Still, it’s an interesting first discussion and one we’ll be keeping a close eye on.

To stay up with the discussion, follow this forum post.

The post Uniswap Community Proposes to Distribute UNI to Proxy Contract Users appeared first on DeFi Rate.

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