Uniswap

Overview

In February 2025, Uniswap DAO launched Cycle 3 of the Uniswap Delegate Reward Initiative, continuing its efforts to enhance governance participation, accountability, and delegate engagement. This program follows the success of Cycle 1 and Cycle 2, which saw increased delegate participation and governance contributions.

The initiative was originally led by StableLab, in collaboration with multiple governance stakeholders. The program's goal is to ensure active, engaged, and high-quality governance while providing incentives that reward valuable contributions to the Uniswap ecosystem.

Compensation Structure & Eligibility

Phase 1: Governance Delegation Initiative (Dec 2023 – Dec 2024)

• Delegation Total: 10 million UNI allocated to 7 active but underrepresented delegates.

• Eligibility:

  • Delegates must maintain at least 80% voting participation (on-chain and Snapshot).

  • Failure to meet this threshold results in undelegation via the Franchiser contract.

  • The delegation lasts 1 year, after which the community assesses its impact.

• Key Selection Criteria: Historical voting activity and governance contributions.

Phase 2: Delegate Reward Initiative (Cycle 3 – March 2025 – August 2025)

• Budget: $540,000 in UNI (allocated for 6 months, with up to $6,000 per month per delegate for 15 delegates).

• Eligibility:

  • Minimum 3 months of active participation as a Uniswap delegate.

  • Participation in on-chain voting for at least three months prior to applying.

• Selection Metrics:

  • Voting Participation (on-chain & off-chain) – weighted towards on-chain participation (7 points total).

  • Proposal Authorship – passed on-chain proposals receive higher weight (3 points total).

  • Community Engagement – participation in governance workshops, community calls, and forums (1 point total).

Governance & Oversight

• Uniswap Foundation oversees the delegation and compensation structure.

• Voting & participation metrics are publicly monitored and verified.

• Cycle 3 introduces a structured, transparent evaluation system to determine eligibility and rewards.

• The Accountability Committee is responsible for distributing rewards and verifying delegate compliance.

• Adjustments are made based on governance efficiency, community feedback, and participation levels.

Implementation Plan & Timeline

• Q1 2025 – Governance Cycle 3 approved, with an application period for delegates.

• March 2025 – Uniswap Delegate Reward Initiative (Cycle 3) officially begins.

• Q2-Q3 2025 – Monthly delegate evaluations and reward distributions.

• August 2025 – Final impact assessment and decision on Cycle 4.

Key Takeaways

• Uniswap DAO has transitioned from passive delegation to a structured, performance-based reward model.

• Strict participation requirements ensure only the most engaged delegates receive compensation.

• Governance accountability mechanisms (like the Franchiser contract) prevent stagnation.

• Incentive alignment promotes decentralization, encouraging active governance engagement rather than rewarding inactive major delegates.

• The future of the program will be assessed after six months, with potential improvements and scalability for Cycle 4.