12 November, 2020 

Will Uniswap Become Centralized?

Uniswap, a decentralized crypto exchange, is an object of everybody's attention these days. Recently all the crypto community was talking about the launch of their DeFi token UNI and a generous airdrop due to this event
Share this
Will Uniswap Become Centralized?

Each user who made at least one trade on this platform got his piece of cake, even those whose transactions weren't successful because of the tech failure. A smart marketing solution indeed worked, and it took only two days for the new token to enter the TOP-20 chart.

These days the name of this platform that has become the world's first decentralized exchange with more than $1 billion trading volume a day is mentioned in the crypto community again and again. Voting means a lot on the decentralized exchanges, and the new question put to a vote by the representatives of Dharma lending raised more than a few concerns inside the community.

To Reduce or Not to Reduce, That is the Question

The question put up for voting concerns the reduction of demands for the submission of proposals to manage Uniswap's protocol. Now the option is available for the users who hold no less than 1% exchange's tokens. The proposal is reviewed by a quorum consisting of holders who owe no less than 4% of them. Dharma proposed to reduce the demands to 0.3% for the submission of the proposal and 3% for participation in a quorum.

What can possibly go wrong? Hayden Adams, the founder of Uniswap, considers this voting an important milestone in the platform's history. But users are confused and don't think it's a good idea. Some of them suppose that reducing the demands to access the management of the protocol may lead to the platform's centralization. But how can that happen?

David Felton thinks that Uniswap is already at risk of turning into a centralized platform even without the further reduction of demands. The reduction may simplify the accumulation of the big amounts of UNI tokens by big corporations and will give them control over the platform. This goes against the very idea of decentralization according to which decentralized exchanges should be ruled by users, not by the companies who look after their own interests. It's not a senseless concern; 30 billion tokens are already in the hands of Dharma and Gauntlet platforms.

Chris Blec, a famous crypto influencer who created the DeFiWatch project, agrees with Felton. However, the representatives of DeFiPrime platform think there is no need to panic. They suppose the platform won't become centralized if a voting cartel will be dissolved after the voting.

The voting should have been already finished at the moment when this article was written, but no information about its results is available now. We follow the latest news and look forward to informing you as soon as there are any.

Video Guides On This Topic:

BTC-Alpha Trading School. Basics Of Crypto Trading

BTC-Alpha Trading School. Signing Up And Beginning Of Trading

BTC-Alpha Trading School. What The Trading Terminal Includes

BTC-Alpha Trading School. Personal Profile Settings

BTC-Alpha Trading School. KYC And Verification Levels

Share this