Uniswap DAO Tackles $6B Treasury Challenge with UTWG

The Uniswap Decentralized Autonomous Organization (DAO) confronts a pressing issue with its treasury, housing assets valued at around $6 billion, predominantly in $UNI tokens. Despite this substantial value, the treasury lacks diversification and a clear strategy for effective utilization, raising concerns about volatility and underutilization. In response to these challenges, a proposal has emerged to establish the Uniswap Treasury Working Group (UTWG).

This group will delve into various treasury management strategies over an eight-week period, consulting experts and studying successful practices from other DAOs like Maker, Aave, Lido, and Gnosis. Key considerations include understanding the legal implications of implementing these strategies, including tax obligations. Collaboration with legal experts is planned to ensure compliance with regulatory requirements. However, the exact execution of these strategies hinges on the establishment of a legal framework and may involve soliciting proposals from service providers.

Formation and Responsibilities of the Uniswap Treasury Working Group (UTWG)

The UTWG will comprise four members, with two already appointed from StableLab and Arana Digital, boasting expertise in governance and DeFi protocols. The remaining two members will be elected via a Snapshot vote, joining WG0 to conduct research and propose deliverables to the DAO. Responsibilities include thorough research into treasury management initiatives, analysis of case studies from other DAOs, and exploration of potential legal frameworks.

Collaboration with legal experts is envisaged to ensure compliance. A budget of 6,000 $UNI has been requested for the UTWG, with compensation set at an hourly rate of $200, mirroring that of the Accountability Committee. Retroactive compensation will be allocated to WG0 based on their input hours following the passage of an on-chain vote.

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Implementation Plan and Price Update

The UTWG aims to present potential treasury management options, but implementation depends on establishing a legal framework. The proposed plan involves presenting options as Request for Comments/Proposals (RFC/RFP), allowing various treasury managers to pitch their services. Following deliberations and evaluations, promising service providers will undergo a vote of confidence from the DAO.

Successful candidates will then collaborate with the UTWG to implement proposed initiatives. The UTWG will serve as a conduit between the DAO and service providers, ensuring accountability and transparency. It’s emphasized that this plan is subject to change based on research findings, with the primary objective being to offer the DAO a range of viable options supported by comprehensive analysis.

Additionally, as of today, the live price of Uniswap (UNI) stands at $12.5757, with a 24-hour trading volume in the cryptocurrency market of $186.9 Million. The coin has surged by 0.62% in the past 24 hours, and Uniswap (UNI) is currently trading between $12.8717 and $12.5384. Uniswap (UNI)’s live market cap is reported to be $7.5 Billion.

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