Based

Uniswap

Foundation

<p>The Uniswap Foundation (UF) has submitted a proposal seeking a second round of funding to invest in their vision of powering their vision of the DeFi ecosystem.&nbsp;</p> 
<h2 id="uniswap-seeks-funding-amidst-dropping-uni-rates">Uniswap Seeks Funding Amidst Dropping UNI Rates</h2> 
<p>Despite the <a href="https://cryptodaily.co.uk/2023/09/uniswap-launches-225m-bug-bounty-program">Uniswap</a> Protocol's native token, UNI, hitting an all-time low in value, the Uniswap Foundation (UF) has submitted a proposal for the second tranche of their $74 million funding. This round, totaling $62 million, aims to fuel their vision of bolstering the DeFi ecosystem. The proposal is set for an on-chain vote scheduled for Wednesday, October 4th, and includes a 10% buffer to mitigate potential price volatility.</p> 
<h3 id="two-tranche-approach">Two-Tranche Approach</h3> 
<p>The UF decided to split the funding request into two tranches. The primary reason behind this division was to allow the UF to establish its legal entity and secure non-profit status from the Internal US Revenue Service (IRS).&nbsp;</p> 
<p>Based in Brooklyn, New York, the UF sought this clarity on tax implications before acquiring the larger portion of funds. With the IRS granting non-profit status in the spring of this year, the UF now seeks the second tranche.</p> 
<p>The first tranche of the funding, approved by Uniswap governance last year, had initially aimed for $20 million. However, due to a decrease in the price of UNI tokens, the first tranche yielded $17.3 million worth of UNI. As a result, $56.7 million remained to be requested in the second tranche, with an added 10% buffer to account for potential price fluctuations, bringing the total request to $62.37 million.</p> 
<h2 id="funding-allocation-and-expenses">Funding Allocation and Expenses</h2> 
<p>Over the last 12 months, the UF has disbursed $4.8 million in research grants and allocated $3.15 million for operations. Unfortunately, they also incurred a loss of $1.29 million due to the market decline in UNI token prices between the initial governance proposal and fund receipt.</p> 
<p>Looking ahead, the UF plans to disburse $10-$15 million per year from its remaining $53.2 million in grants capital, with the yearly amount set to increase over time.</p> 
<h3 id="uni-price-analysis">UNI Price Analysis</h3> 
<p>The UNI token has recently exhibited consolidation, trading within the $4.198 to $4.311 price range over the past week. This price stability can be attributed to the broader market trend and a bearish macro outlook. In the past fourteen days, UNI has experienced a slight 0.5% decline, while it has dropped significantly by 9.6% over the last 30 days, reaching a four-month low.</p> 
<p>In summary, despite the recent downtrend in UNI token prices and TVL, Uniswap is moving forward with its proposal for a substantial funding injection, aiming to further its vision for the DeFi ecosystem.</p> 
<p>Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.&nbsp;</p>

Uniswap’s Seeks Funding Amidst Dropping UNI Rates

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