Main Points
- Dharma alleges that they want to provide the Uniswap community with an easier way to govern the protocol.
- But fears arise that it will turn them into a cartel
- Uniswap governance has only launched in September
What is Dharma?
Dharma is a portal to decentralized exchange Uniswap.
What did they propose?
1/ We have made the first proposal to @UniswapProtocol's new governance system: Reduce UNI Governance Proposal & Quorum Thresholds
— Dharma (@Dharma_HQ) October 12, 2020
TL;DR: We propose a threshold of 3m UNI for proposal submission (down from 10m), and 30m UNI as quorum (down from 40m).https://t.co/MDZkTfwMYt
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Why is it bad?
By lowering the threshold for proposing and passing proposals they effectively create an environment where they can ââcollaborateââ with other companies and ââcontrolââ the protocol completely bypassing the governance model that was intended for the protocol in the first place.
The fear was that, should the proposal pass, Dharma, with backing from Gauntlet, would have enough power to follow through on its plans to use Uniswapâs treasury funds to pay its own community.
Why are you choosing to vote no?
— BSA EPFL (@bsa_epfl) October 14, 2020
If "FOR" wins, then @NadavAHollander and @tarunchitra will have enough power to control the outcome of *every* Uniswap vote.
1st thing Nadav plans to do is vote-in a $UNI airdrop to his Dharma users from the "community treasury".
If this isn't a governance attack, then what is? pic.twitter.com/TsTfIWjKTN
So basically to conclude, Dharma claims that lowering the thresholds make a better more agile governance protocol, when in reality they are attacking that governance they claim to support by empowering their position to push their agenda. However, this whole situation gives a good opportunity to reflect and think on all the challenges governance coins and protocols face to achieve an elusive balance,
