Ethereum solutions provider ConsenSys has pledged support for a Uniswap governance proposal to set aside a token for a new decentralized finance (DeFi) fund for political lobbying.
The proposal was made on 27 May The Harvard Law School Blockchain and Fintech Initiative for the creation of a fund that will finance existing and new political groups engaged in crypto policy-making and lobbying to protect DeFi against regulation.
The Harvard Law BFI proposal cited concerns that governments around the world might try to regulate DeFi without proper education and suggested a fund of 1-1.5 million UNI. This led to over 10 million tokens supporting the idea. The motion is headed for a full vote.
— Matt Corva (@MattCorva) 2 June 2021
Matt Corva, General Legal Adviser at ConsenSys, Having said that educating lawmakers is of vital importance at the moment, “particularly as we move toward true aspiring ‘main street’ use of our technologies”:
“In short, this is a very good effort and taking the first step Uniswap could break the floodgates of other large coffers supporting this (or similar) initiative.”
Calling it “one of the best initiatives to date”, Korva said the firm had been directly or indirectly engaged in some form of policy and advocacy since early 2016. He said he thinks there are two best uses for community money. There were things that drive the real-life use of technology as well as advocacy.
“Therefore, we will support this and have already communicated our desire to our portfolio companies to consider doing so.”
As per the investment arm of the firm trap, portfolio companies include crypto lending platform BlockFi, security firm Quantstamp, scaling solutions provider Starkware and DeFi protocol Compound Finance, which may be able to tip voting balances.
DeFi Political Defense Fund Will Target Biden Administration’s 2020 Budget Proposal, Includes Possible Expansion crypto asset reporting requirements, among others.
Consensys should become a Uniswap representative https://t.co/vc9625wzWi 🙂
— Hayden Adams (@haydenzadams) 2 June 2021
The Uniswap ruling proposal has been controversial as many disagree that a single organization and a handful of lawyers should decide how to deploy lobbying funds for the rest of the community.
The pseudonymous crypto-influencer DCInvestor remained skeptical, stating that the amount requested was “simply too great”, and does not conform to responsible Treasury management.
The Uniswap governance process consists of three phases: a “temperature check” vote requires 25,000 UNIs, a “consensus check” vote requires 50,000 to pass, and a final vote requires 40 to pass. A quorum of one million UNIs is required.
snapshot reported that there were 34 million votes in the “consensus check” phase and 17.8 million votes, meaning it will now move towards a full vote.
According to etherscan, there are several UNI whale addresses holding over 10 million tokens and ConsenSys could be one of them. Its endorsement of the motion will undoubtedly have a bearing on the outcome.