- The DAO Uniswap unanimously adopted the new governance system, with 61 million UNI in favor.
- The proposal aims to reduce friction by removing the first off-chain vote.
- Uniswap price is holding above $5 and increasing buying pressure will push the price towards $6.40.
Uniswap has a long history of trying to push the boundaries of community participation. Uniswap’s parachains are one of the best examples of the successful operation of a Decentralized Autonomous Organization (DAO). Following the same concept, the community now wants to change the whole governance process.
Uniswap changes proposal approval
After a week of voting, the Uniswap community voted 61 million UNI in favor of the new governance proposal. The reason for this change is to reduce friction in the voting process.
To achieve this, the DAO approved eliminating the first instant off-chain vote as well as increasing the quorum for the remaining off-chain votes from UNI 5 million to UNI 10 million. The proposal states
“While the governance process put in place today has largely achieved these goals, we believe improvements can be made ahead of the final governance vote to reduce overhead and improve off-chain signaling.”
The proposal was pushed by the Uniswap Foundation, which was established four months ago. Through the foundation, the team aims to support developers in the Uniswap ecosystem and simplify the governance process.
Uniswap price hopes for a rally
Uniswap price is currently trading at $5.30 after bouncing off its immediate support level at $4.99 this week. The cryptocurrency has held this support level for over a month now, which could help UNI start a recovery.
To do this, however, the altcoin needs to come under some buying pressure, as selling has been significantly more dominant over the past three weeks. The Relative Strength Index (RSI) supports this as the indicator turned bullish after slipping near oversold territory.
UNI/USD 1 day chart
If Uniswap price manages to break the immediate resistance at $5.49 and tip $5.85 into a support floor, UNI could start a recovery rally and mark $6.39.
However, if bearish signals from the broader market were to dominate the price action and the altcoin’s fall, it would eventually mark the $4.99 support. Uniswap price will find an opportunity to bounce off the critical $4.50 support if it declines further. However, if UNI closes with a daily candle below this level, the bullish thesis would be invalidated and the cryptocurrency could drop to the lows of $3.62.