In a smart move, the Uniswap platform was able to remedy the situation and return the lost users to the SushiSwap project, which was motivating its users with the digital currency SUSHI. The Uniswap platform also launched a digital currency and distributed part of it free of charge to users who had previously used its services before September 1, 2020.

With this, Uniswap regained its dominance and the total value closed in it approached more than 2 billion dollars, while that of SushiSwap dwindled.

Uniswap explained that 40% of all UNI cryptocurrencies will be allocated to the team, investors and advisors.

Allocation of digital currencies and unfair distribution:

In a new report issued by glass He pointed out that the Uniswap protocol falls short in the concept of true decentralization.

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Liesl Eichholz, who wrote the report, questioned the distribution of these new digital currencies that were supposed to be distributed over a period of four years.

However, the general schedule of entitlement has not been announced.

He added that there are also more disturbing things like that these cryptocurrencies have been completely monetized and are currently held in regular Ethereum addresses without transfer restrictions.

1 / the 400 mm UNI $ Assigned to Tweet embed The team and investors are supposed to invest more than 4 years – but no maturity schedule has been published, and the tokens are currently liquid.

Why aren’t these tokens subject to some kind of timelock?

– Liesl Eichholz (@liesleichholz) September 24, 2020

The report added that the term “entitlement” has been loosely used by Uniswap, and this method of effectively storing cryptocurrencies gives the team and investors rights to manage the protocol.

It was stated in the report:

The Uniswap team and investors have allocated themselves a huge percentage of the total UNI cryptocurrency supply.

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The distribution route is similar to the ICO that was in 2017.

The report went on to criticize Uniswap’s governance, stating that in order to submit an offer, at least 1% of UNI’s total bid must be owned.

and 4% of the total supply, or 40 million UNI to reach a quorum.

Whales and Uniswap:

The report stated that only 15 addresses each control at least 10 million UNI, four of which are dedicated to the governance treasury, and one is an address distributed over the free airdrop distribution process.

Of the remaining ten titles, nine contain a portion dedicated to the team and the investor.

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Assuming the stake of the team and investors is not compromised, this leaves one address that currently contains enough UNI to submit a governance proposal.

This address is owned by Binance, which owns about 26 million UNI. In this regard, the report stated:

This means that although the governance treasury will be opened in less than a month, only Binance currently has the ability to suggest uses for these funds.

Thus, Binance, by virtue of its stake in UNI coins, has the ability to control the direction of use of the funds, according to the report.

The report concludes that community-led governance is essentially impossible for Uniswap at present.

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