Uniswap Foundation Postpones Vote Amidst Controversy
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Uniswap Foundation Delays Key Vote on Staking and Delegation Rewards
The Uniswap Foundation has postponed the highly anticipated vote on UNI staking and delegation rewards, initially scheduled for May 31. This decision comes amidst growing controversy and accusations of undue influence from a venture capital company within the crypto community.
This prompted the Foundation to conduct a more thorough review and examination of the proposal, delaying the decision-making process. The proposed upgrade, aimed at activating the exchange’s “fee switch” and providing incentives to UNI token holders who staked and delegated their tokens, has been met with both anticipation and skepticism.
According to Erin Koen, the lead official overseeing the Uniswap DAO governance forum, the sensitive and irreversible nature of the upgrade necessitates rigorous vetting to ensure its integrity before implementation.
Accusations of Undue Influence
The delay has reignited concerns within the community about the integrity of the decentralized governance system. Dan Robinson, a partner at Paradigm, a venture capital firm focused on crypto, opined that the Uniswap Foundation caved to pressure from a rival venture capital firm.
This criticism has sparked concerns about the Foundation’s ability to withstand external influences. The Uniswap DAO has been exploring the possibility of enabling a fee switch for several years, but concerns regarding potential violations of US securities laws have hindered previous proposals.
This cautious approach has delayed progress on the issue despite community support for this proposal when it was introduced in February. Despite the setback, the Uniswap Foundation remains committed to addressing concerns and ensuring a transparent and inclusive decision-making process. The Foundation recently disclosed that it holds $41.41 million in fiat and stablecoins, along with 730,000 UNI tokens, as of the end of the first quarter of 2024.
UNI’s Price Analysis
Cryptocurrency investors are eyeing Uniswap (UNI) as it undergoes a potential correction phase, offering a promising buying opportunity before a projected 45% rally. Based on recent market trends, the analysis suggests that UNI may experience a dip before a strong rally, presenting patient buyers with a chance to accumulate more of this token.
Notably, Uniswap’s price surged by 75% between May 15 and May 26, reaching a local top at $11.81. This rally followed a 66% crash witnessed between early March and mid-April. The recent uptrend preceded a month-long accumulation phase, indicating a pattern in the token’s price movement.
The Uniswap price downtrend will likely create an accumulation zone, allowing investors to accumulate UNI before a potential volatile upswing. Hence, analysts suggest that if the Uniswap price bounces from the accumulation zone, it could target key resistance levels at $11.39 and $12.87. The successful flip of $11.39 into a support level would signal strong bullish momentum, leading to a significant surge in UNI’s price.
Technical Indicators Support Bullish Outlook
Moreover, technical indicators support this analysis. The Relative Strength Index (RSI) is nearing the mean level of 50 on the daily timeframe, and the Awesome Oscillator (AO) is above its mean zero level, indicating favorable bullish momentum for UNI.
Santiment’s 30-day Market Value to Realized Value (MVRV) indicator further strengthens this bullish outlook for Uniswap price. With a current value of 3.88%, investors who purchased UNI in the past month are at an average profit of 3.88%. This suggests that even if these holders decide to sell, it would not significantly impact the bullish sentiment surrounding Uniswap.
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