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- Uniswap community approves $540,000 funding for Cycle 3 of its Delegate Reward Initiative.
- Up to $6,000 in monthly UNI tokens will be awarded to top delegates based on voting participation and engagement.
- Cycle 3 expands the program to 15 delegates, introducing new metrics for performance evaluation.
To further enhance the quality of its decentralized governance. Uniswap’s community has approved a proposal to expand its Delegate Reward Initiative, allocating an additional $540,000 in UNI tokens to fund Cycle 3 of the program.
The initiative’s first two cycles succeeded in incentivizing top delegates for their contributions to the governance process. This expansion will reward delegates based on their voting participation and community engagement, which is expected to improve governance participation rates and enhance the protocol’s responsiveness.
Cycle 3 Expands Delegate Rewards and Criteria for Active Governance
The Delegate Reward Initiative, launched in 2024, has proven effective in driving higher participation in Uniswap’s governance system. The program encourages delegates to actively engage with the platform’s decision-making process by offering financial incentives.
The updated proposal selects 15 delegates to participate in Cycle 3, up from 12 delegates in previous cycles.The initiative’s criteria will now include a new “points system” based on voting history, proposal authorship, and community involvement.
Delegates in Cycle 3 will earn up to $6,000 monthly, with $3,000 allocated for voting participation and an additional $3,000 for submitting detailed vote rationales.
To qualify for the full reward, delegates must maintain a minimum of 80% voting participation. Ensuring active participants are adequately compensated for their efforts. Introducing a points system aims to refine further the process and reward delegates who vote and contribute to developing governance proposals.
Uniswap DAO Backs Delegate Rewards
The Uniswap DAO endorsed the initiative with 99.45% approval. It has benefited both the protocol and the community. In the first two cycles, selected delegates showed high participation. The program’s incentives also attracted several new delegates.
Uniswap creator Hayden Adams noted that while on-chain governance aims to be democratic. Adding incentives could help create a more dynamic and responsive system by attracting and retaining active participants.
Cycle 3 promises to build on this success by expanding the pool of delegates and introducing updated metrics to assess performance.People see active governance as essential for the long-term success of decentralized platforms. Initiatives like this one aim to address the inherent challenges of on-chain voting. Ensuring the system remains effective and fair as Uniswap grows.
The proposal is now in its “queued” phase, with execution pending a timelock period. If all goes according to plan, Cycle 3 will, in turn. Further solidify Uniswap’s commitment to a transparent, efficient, and highly engaged decentralized governance model.
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