[Temp Check] Should Uniswap Distribute UNI to Liquidity Providers?

Background:

Uniswap’s genesis liquidity incentive program ends on Nov 17. The existing program distributed 20 million UNI to LPs over 2 months, split evenly between the WBTC/ETH, USDC/ETH, USDT/ETH, and DAI/ETH pools. This works out to 2.5 million UNI per pool, per month.

Benefits of UNI distribution to LPs:

Ongoing incentives allows UNI to be distributed to those providing value in the form of liquidity
The incentivized pools are likely to remain the most liquid DEX pair on Ethereum, providing a venue to trade against ETH at virtually any size with zero slippage.
Reduced incentives prevents UNI from being distributed ‘too fast’, marked by all tokens being distributed before the Foundation’s four year vesting has passed.

Drawbacks of UNI distribution to LPs:

Ongoing incentives result in UNI largely being ‘farmed and dumped’ to earn yield. See ETH USD Yield Farm, Pickle, Harvest and Alpha.
Reduced incentives means UNI is distributed slower.
Incentivizing the same pools can be seen as choosing ‘winners’ by selecting WBTC as THE Bitcoin on Ethereum and favoring certain stablecoins over others.

Proposed new distribution:

Distribute UNI for an additional 2 months from the time this proposal is adopted and executed by governance. Distribute to the same 4 pools, but at half the rate of the genesis distribution. This works out to 1.25 million UNI per month to each of the 4 covered pools (WBTC/ETH, USDC/ETH, USDT/ETH, DAI/ETH), for a total of 5M UNI per month, or 10M UNI total over the next 2 months.

Please see the liquidity incentive governance plan document for full details and timelines.

Temperature check question:

Should Uniswap distribute UNI to liquidity providers per the specifications outlined above?

Next steps:

The snapshot poll will be live for 3 days. If the poll passes with a minimum of 25,000 UNI in support, this proposal will move forward to the consensus check phase. Details about the Uniswap governance process can be found here.

Yes, I support this proposal

16.5M

Background:

Benefits of UNI distribution to LPs:

Ongoing incentives allows UNI to be distributed to those providing value in the form of liquidity
The incentivized pools are likely to remain the most liquid DEX pair on Ethereum, providing a venue to trade against ETH at virtually any size with zero slippage.
Reduced incentives prevents UNI from being distributed ‘too fast’, marked by all tokens being distributed before the Foundation’s four year vesting has passed.

Drawbacks of UNI distribution to LPs:

Ongoing incentives result in UNI largely being ‘farmed and dumped’ to earn yield. See ETH USD Yield Farm, Pickle, Harvest and Alpha.
Reduced incentives means UNI is distributed slower.
Incentivizing the same pools can be seen as choosing ‘winners’ by selecting WBTC as THE Bitcoin on Ethereum and favoring certain stablecoins over others.

Proposed new distribution:

Please see the liquidity incentive governance plan document for full details and timelines.

Temperature check question:

Should Uniswap distribute UNI to liquidity providers per the specifications outlined above?

Next steps:

Yes, I support this proposal

16.5M

Background:

Benefits of UNI distribution to LPs:

Ongoing incentives allows UNI to be distributed to those providing value in the form of liquidity
The incentivized pools are likely to remain the most liquid DEX pair on Ethereum, providing a venue to trade against ETH at virtually any size with zero slippage.
Reduced incentives prevents UNI from being distributed ‘too fast’, marked by all tokens being distributed before the Foundation’s four year vesting has passed.

Drawbacks of UNI distribution to LPs:

Ongoing incentives result in UNI largely being ‘farmed and dumped’ to earn yield. See ETH USD Yield Farm, Pickle, Harvest and Alpha.
Reduced incentives means UNI is distributed slower.
Incentivizing the same pools can be seen as choosing ‘winners’ by selecting WBTC as THE Bitcoin on Ethereum and favoring certain stablecoins over others.

Proposed new distribution:

Please see the liquidity incentive governance plan document for full details and timelines.

Temperature check question:

Should Uniswap distribute UNI to liquidity providers per the specifications outlined above?

Next steps:

Background:

Benefits of UNI distribution to LPs:

Ongoing incentives allows UNI to be distributed to those providing value in the form of liquidity
The incentivized pools are likely to remain the most liquid DEX pair on Ethereum, providing a venue to trade against ETH at virtually any size with zero slippage.
Reduced incentives prevents UNI from being distributed ‘too fast’, marked by all tokens being distributed before the Foundation’s four year vesting has passed.

Drawbacks of UNI distribution to LPs:

Ongoing incentives result in UNI largely being ‘farmed and dumped’ to earn yield. See ETH USD Yield Farm, Pickle, Harvest and Alpha.
Reduced incentives means UNI is distributed slower.
Incentivizing the same pools can be seen as choosing ‘winners’ by selecting WBTC as THE Bitcoin on Ethereum and favoring certain stablecoins over others.

Proposed new distribution:

Please see the liquidity incentive governance plan document for full details and timelines.

Temperature check question:

Should Uniswap distribute UNI to liquidity providers per the specifications outlined above?

Next steps:

Yes, I support this proposal

16.5M

Yes, I support this proposal

16.5M