Uniswap Got Scammed? (Demand Changes for the Future of DeFi)

word on the tweet is that there was a heist at the unit swap treasury and a bunch of bandits and suits made off with 25 million dollars in uni tokens but it was kind of an inside job so it didn't get much press today we're going to take a look at what happened and see what can be improved about unit swap's governance system let's get it welcome to bitboy crypto home of the bid squad the largest and greatest crypto community in all the interwebs my name is ben every day on this channel i show you how to make money in crypto if you like money and crypto then make sure to hit that subscribe button in this video we're going to examine some of the recent concerns that people are having about uniswap's governance and the possibility that appears to have been hijacked by a powerful group of investors who own a large share of the platform's tokens the controversy began when a group calling themselves the defy education fund requested a grant from the united swap treasury for up to one and a half million uni tokens which is over 25 million dollars at current prices the proposal was called temperature check funding a political defense of d5 and it promised to use the money to build a lobbying group that would help to get more favorable crypto regulations passed the measure was ultimately pushed through thanks to the enthusiastic support of unispot founder hayden adams at face value this all sounds great the industry is in desperate need of political allies but many swap token holders in the ethereum community as a whole had some major reservations about how all this went down many were quick to point out that the twitter profile for the d5 defense fund was just created on june 3rd and the account didn't even have a profile picture until they got called out for not having one divi legend andre cronier posted a poll asking his followers if they were aware of this group before the recent proposal and an overwhelming majority had never heard of them his audience is a pretty good indication of the general community too because it consists mostly of divide power users and developers who live and breathe crypto it certainly is a bit strange that some of the most active people in the space are just now learning about this group the proposal itself was criticized for being extremely opaque with no breakdown of expenses or specific plan of how they're going to achieve their stated goals but just wait it gets worse the divide defense fund was supposed to slowly cash out their uni tokens over the next several years on june 1st while responding to concerns from the community about the large grant proposal they promised that the grant would be liquidated over the next four to five years to prevent any impact on the price of the uni token here's the statement that they made last month before they were given the money the proposal outlines that these funds are anticipated to be allocated over the next four to five years so it won't have the same dilutive effect of selling one million uni all at once which we agree would be a problem we think it is important that the board has enough to work with so they can react quickly to regulatory threats without being hamstrung by the long governance process for every decision they make now guess what happened after they got the money that they sold almost half of it right away on june 12 just over a month later the divide defense fund made its second post on twitter to announce that they had already sold a half million uni tokens for 10.2 million dollars in usdc in a medium post playing damage control the divide defense fund said they were given considerable discretion over the funds and claimed that they were within their legal rights to cash out despite breaking a promise that was made to the community the post went on to promise that no one on the committee was personally getting paid from the fund that sounds like the promises we hear from a third world dictator not a crypto degen oh we promised that we didn't pay ourselves after we cashed out right and epstein slipped on an empty bag of skittles and bumped his head behind the divi education button is another group called the harvard law blockchain and fintech initiative the initiative is made up of a collection of lawyers technology researchers and wall street types with connections to harvard one of its foundation members was v j vesnaver who is the head of business operations and strategy at coinbase according to his linkedin profile another founding member amy zhang bragged in her bio that she worked with the sec to take down nutso icos i'm not sure that these are the people that i want representing our industry in washington it's not entirely clear what the hierarchy of this group is but it seems that vessenver has had a large role from the beginning which means that coinbase ventures has its hands all over this thing and we know who's behind that the issue has raised some serious concerns that uniswap's governance has been hijacked by powerful insiders who are creating slush ones for themselves with a little oversight from the community before we get into that take a second and click that like and subscribe button for us it puts you in the bit squad which is not a d5 platform but a benevolent dictatorship run by yours truly we still have a lot of work to do though in governance in divi before everything is truly decentralized as it stands right now vcs have an incredible amount of power in parts of the crypto markets through their early investments in large projects in many cases they are given opportunities to invest in blockchain startups before the general public even finds out about them not only do they have enough tokens to manipulate the markets but they also have enough tokens to significantly influence the governance of these platforms with uniswap specifically insiders are definitely a problem as we've already covered but there are also rules made into the governance system that prevents people with smaller holdings from participating in the process which makes the situation even worse there have been cases where the community has attempted to band together to pass measures that ultimately would democratize the governance process but these measures failed because the insiders decided to vote against them despite overwhelming community support sounds kind of like washington but i want to be clear i'm not here to spread fud i think uniswap is an incredible platform we use it here all the time this is the divi channel we love d5 in all its flavors i believe that divine has the potential to change the world and i think decentralized governance is a huge breakthrough that could help to correct the power imbalances that we currently see that are breaking our economies and tearing apart our society but we need to do this right i can't turn and look away from shady activity just because i'm a fan of the platform especially if i want that platform and this entire ecosystem to succeed we have an unprecedented opportunity to improve the world with this technology and unlike the traditional financial system we actually do have some say in which direction this industry will go even if we're not large token holders in these networks we are a part of the social layer that holds this whole thing together don't forget that it's our belief in this technology that gives all these assets their value in the first place as far as tangible solutions go uniswap and other device protocols need to ensure that small token holders still have a significant voice in governance if that were the case this measure probably never would have happened judging from the many comments on the controversial unit swap proposal the community would have preferred if this group were first given an opportunity to prove that they would provide value with a smaller grant before they were awarded millions of dollars with no questions asked seems kind of like a loophole they want to shore up teams that are launching new projects should also put more thought into fair launches that result in wider token distributions there are also different voting methods like first pass the post that could be an improvement to the simple majority either way unisop needs to clean up its act not just for divi as a whole but for their own survival don't forget the other smart contract platform coming out that's been working on its governance for a long time cardano and if uni swap and ethereum want to succeed they can't sit on their first mover advantage they could face a future that looks more like nokia instead of apple they have to do better because ada is coming on strong and will gladly drink their milkshake but that's all i got be blessed good boy out [Music] you

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