Uniswap users and DeFi watchers fear that the right to vote for UNI token holders in decisions taken within the platform will become a formality. The fear that whales with large amounts of UNI could cooperate to get the results they wanted in the voting and that this would centralize the platform also negatively affected the UNI price.
Uniswap’s governance token, UNI, grants investors who hold UNI coins the right to vote on some issues related to the platform. Users of Uniswap, which is currently the 36th largest crypto currency in terms of market value, argue that whales with a large amount of UNI can do unfair voting.
According to users, Uniswap whales with 1000 or more UNI coins can cooperate and provide the results they want in the voting. The controversy flared up after an account called Dharma opened the first vote entitled “Reduce the UNI Governance Proposal and Qualification Thresholds”.
15 Million Voting Rights at One Address Dangerous for the Future of UNI
A blog post about Dharma, a Uniswap whale, “it holds incredible power, with 15 million votes at a single address. In this way, he can irresistibly settle into the Uniswap management and directly own the DEX ”.
Dharma is not the only name that reinforces the fear of Uniswap’s centralization. Some market watchers also cited blockchain simulation platform Gauntlet, which has access to 15 million UNI tokens. Some names even launched campaigns to vote against the whales in the vote initiated by the Dharma.
Uniswap’s decentralized structure is a factor that puts it in an important position in DeFi and crypto money world; A centralized situation that can come together with a cooperation and change the fate of all voting as it wishes could also have bad consequences for UNI. While most UNI coins are dominated by big players, any coalition between the two whales could eliminate many who voted against them. This may lead to a gradual decrease in demand for the UNI coin.
As Debates Continue What About UNI?
- UNI, which managed to increase its price up to $ 8.40 just 27 days ago, fell by about 64% from here.
- Currently traded at $ 3.03, the market value of the UNI coin is around $ 560 million.
- The UNI price has dropped by 8% in the last 24 hours, driven by controversy and internal turmoil.
- Analsit Yashu Gola suggested that fears of centralization also affect UNI pairs.
- Gola said that the UNI / USD pair fell 20% right after the voting debate flared up and fell below the substantial support of $ 3.17.
- Uniswap could face an even more downside correction, according to analyst Gola.
- Yashu Gola suggested that the controversy could pull the UNI coin to the critical support level of $ 2.5.