Uniswap DAO is currently voting on a proposal to return 12.5 million UNI tokens, valued at approximately $42 million, to its governance timelock. These tokens were originally delegated between 2022 and 2023 to the Uniswap Foundation and several active delegates to bolster governance participation during a period of weaker voter engagement.
The proposal argues that the ecosystem has matured significantly, with more active delegation and stronger voting turnout under the DUNI system, where passed proposals now average about 75 million votes. By recalling the delegated tokens, the DAO aims to realign voting power with economic risk, as experts warn that allowing delegates to vote without their own capital can create imbalances and potential misalignment with long-term interests.
The vote remains open until May 8, and the outcome is expected to set a precedent for governance models across other decentralized autonomous organizations. This move does not involve a market buyback but rather a return of tokens to the timelock, which could reshape governance dynamics within the Uniswap ecosystem.
