The Uniswap proposal seeks to create an independent entity with a budget of $74 million

Uniswap community members are looking to create a new entity called the Uniswap Foundation, which will address some of the shortcomings and improve the development of the protocol’s decentralized ecosystem.

The proposed Uniswap Foundation seeks a budget of $74 million to be disbursed twice, while also requesting over two million UNI tokens to participate in the governance process.

The proposed Uniswap foundation aims to improve the ecosystem

Devin Walsh and Ken Ng submitted a proposal on the creation of the Uniswap Foundation (UF) at the Uniswap Governance Forum on Thursday (August 4, 2022). Under the proposal, UF would operate as an independent entity.

The new unit will be tasked with improving aspects of the ecosystem, such as reducing friction in the governance process, providing more grants to ambitious and impactful projects, and making it easier to navigate.

To enable the new entity to operate, the proposal calls for a budget of $74 million in UNI, Uniswap’s native token. While $60 million will be injected into the Uniswap Grants Program (UGP) budget to cover three years, $14 million will be used for operating expenses for a full team for the same period.

Meanwhile, the requested budget will be disbursed in two installments of $20 million and $54 million.

Walsh and Ng, founders of pre-existing institution Uniswap, will serve as the entity’s executive producer and head of operations, respectively. Previously, Walsh was chief of staff at Uniswap Labs, while Ng headed UGP for a year and a half. Additionally, UF will be a Delaware-based corporation.

In addition to the $74 million budget request, the proposal also seeks 2.5 million UNI tokens for participation in governance and invited community input.

“We are excited to discuss this proposal with the wider community as it moves through the Request for Comment phase. If sentiment is positive, a Temperature Check Snapshot poll will be created on Monday, August 8th. If the Temp Check poll passes, additional comments will be incorporated before moving to the Consensus Check.”

Hayden praises proposal efforts

Uniswap founder Hayden Adams reacted positively to the proposed creation of a Foundation, applauding the members behind it and stating:

“The power of an ecosystem grows with each additional team that builds and works towards its success. Imo, after this passes, the Foundation will be yet another group working towards a future where the Protocol won’t just survive – it will thrive!”

As mentioned earlier by Hidden potatothe decentralized exchange giant has acquired NFT market aggregator Genie with plans to allow users to trade NFTs through Uniswap’s web app.

Meanwhile, the platform recently suffered a phishing attack, which resulted in the loss of more than $8 million worth of ETH.