Uniswap had previously raised $17.3 in the first round of a $74 million funding that was mapped out for its developer.
Decentralized exchange (DEX) Uniswap is set to vote on additional funding for its developer, Uniswap Foundation. That is according to a September 27 announcement by the DEX.
Uniswap is hoping that the vote will help secure approval for the disbursement of an estimated $62 million to Uniswap Foundation.
Recall, however, that the DEX had previously raised $17.3 in the first round of a $74 million funding that was mapped out for its developer. So, expectations are that the second tranche would raise the remaining $56.7 million or thereabouts. Interestingly, however, the second tranche now appears to have added an extra 10% to cushion the effect of price volatility, making it $62 million in total. The on-chain vote for the approval of the fund is slated to take place on October 4.
Uniswap Foundation Reveals Its Plans for the Fund
The developers behind Uniswap DEX have claimed that once approved, the fund will focus on decentralized finance (DeFi) projects. That is, in the area of operations and research.
The foundation says it would issue between $10 million to $15 million per year in community grants to such projects that are eligible. Part of the statement reads:
“The UF has $53.2M in grant capital remaining to disburse. We plan to disburse $10-$15M per year, with the amount disbursed per year increasing over time.”
The Uniswap Foundation also explained the discrepancy with the grant capital. The team claimed that it has spent around $4.8 million on research grants over the last 12 months. Within the same period, the team also claims to have spent another $3.15 million on operations, while incurring a $1.29 million loss on capital from the market decline of UNI tokens. That is for the period between its proposal and the time that the find was released to the team.
For what it’s worth though, the previous $17.3 million has another target. Developers say that they will use the fund to build a software development kit for Uniswap v4. Additionally, the fund will also be used to support the subsequent transition. And, according to the foundation, all of these will happen over the next year.