Uniswap is one of the most popular decentralized exchanges [DEX] for listing projects, trading, and investing in digital assets.
Just a month after the decentralized finance [DeFi] education-focused fund drama that fueled concerns over flaws in Uniswap’s governance model, the team behind the platform fixed a “minor issue.” Uniswap Founder Hayden Adams took Twitter to reveal discovering the issue that would have made the next 8 votes ineffective. His tweet read,
“Uniswap community members recently proposed upgrading Uniswap governance contracts to Bravo [also used by Compound gov]. Today, a Labs team member discovered a minor issue that would have made the next 8 votes ineffective. The issue: proposalCount initialized to 0, initialProposalCount to 8. Executing checks proposalId greater than initialProposalCount so next 8 proposals were unable to execute. I fixed it by submitting 8 “dummy” proposals that can never execute, bringing proposalCount to 8.”
Following the episode, Adams admitted that governance contract upgrades require particular caution and also went on to add that the 7 days voting period is likely not sufficient time for meticulous security reviews.
Uniswap Governance Drama
Uniswap continues to keep growing and attracting projects at a much faster rate than its rivals. But the platform faced a severe backlash from the traders and crypto enthusiasts after the DeFi education-focused fund abruptly sold off half of the assets allocated to it by Uniswap governance – opening a can of worms that questioned the DEX’s governance, transparency, and project accountability.
It all started when the DeFi Education Fund backed by the DEX revealed selling off 500,000UNI for some $10.2 million USDC on July 12. The move by the newly formed organization clearly did not sit well with the industry players as many questioned why would the DEF require such a massive amount of capital. The controversy induced concerns not just over the decentralized exchange’s governance model; but also transparent, accountability and the nature of decentralization. Additionally, many also speculated the intention behind presenting the proposal by Harvard Law’s student group.