[Proposal in creation] Should Uniswap distribute UNI to LPs again ? Governance

https://gov.uniswap.org/t/consensus-check-should-uniswap-distribute-uni-to-liquidity-providers/8878

It is proposed that we should distribute UNI for an additional 2 months in the following fashion :

  • WBTC/ETH - 1.67 million UNI per month, ⅓ of total
  • USDC/ETH - 1.25 million UNI per month, ¼ of total
  • USDT/ETH - 1.25 million UNI per month, ¼ of total
  • DAI/ETH - 0.83 million UNI per month, ⅙ of total

The proposal has passed consensus and temperature checks.

The objective is to keep rewarding liquidity providers on various pairs in order to reduce slippage and provide the ability to trade virtually any amounts on these pairs.

While some users seem to believe this proposal is not an effective way of allocating the treasury, decentralizing the protocol’s governance and acquiring new users on the long term, a big part of the active community proved the need of a short-term solution to similar competitors operations.

Our take :

Data has shown that stopping liquidity programs create a short but continuous user bleeding. This problem needs to be addressed, but we believe current governance model is not efficient enough to react correctly.

Previous discussions on the topic :

https://gov.uniswap.org/t/discussion-uniswap-liquidity-incentive-plan/8590

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