Uniswap DAO Vote on Returning 12.5M UNI Tokens to Governance

• Uniswap DAO is voting on whether to return 12.5 million delegated UNI tokens to its governance timelock.
• The tokens were delegated in 2022 and 2023 to support governance when participation was lower.
• Erin Koen said passed proposals have averaged about 75 million votes since DUNI was established.

Uniswap DAO is voting on a proposal to return 12.5 million UNI tokens, worth about $42 million, to its governance timelock. The tokens were delegated between 2022 and 2023 to the Uniswap Foundation and several active delegates during a period of weaker governance participation.

The proposal now argues that Uniswap’s governance structure has changed, with more active delegation and stronger voting turnout under DUNI. Meanwhile, DeFi data showed total value locked across the sector at $85.86 billion, while Uniswap’s vote remains open until May 8.

Delegated UNI Faces Recall

Erin Koen, the proposal’s author and governance lead at Uniswap Labs, said the plan would undelegate 12.5 million UNI currently deployed through the Franchiser mechanism. The tokens would return to the Governance Timelock if the proposal passes.

The original delegation included 2.5 million UNI for the Uniswap Foundation and 10 million UNI for active delegates. According to the proposal, the DAO made those allocations during periods when the quorum was at risk, and fewer delegates could meet the proposal threshold.

Notably, Koen said Uniswap’s governance environment now looks different. “Today, Uniswap’s governance environment looks very different,” Koen said, adding that UNI holders have been actively delegating voting power.

Passed proposals have averaged roughly 75 million votes in turnout since DUNI was established, according to the proposal. That figure exceeds quorum by about 88%, while more than 50 delegates now hold over 1 million UNI in voting power.

DUNI Changes Governance Setup

DUNI, or Uniswap’s Decentralized Unincorporated Nonprofit Association, gives the DAO a legal structure that recognizes on-chain governance votes. It also aims to protect DAO members from personal liability tied to collective decisions.

The improved voting activity forms the main basis for the recall proposal. Koen said the delegated tokens served their original purpose, which centered on building an active governance base when participation was weaker.

However, the proposal also cites incentive alignment. The Franchiser mechanism gave selected delegates voting power, yet it did not directly connect that influence with their own economic exposure to UNI.

“The potential for this misalignment should not persist indefinitely when the original reason for implementing it is no longer a concern,” Koen said. The statement frames the recall as both a governance update and a risk-control measure.

Vote Continues Until May 8

The vote comes as Uniswap Labs and the Uniswap Foundation continue working on governance reforms. Previous criticism focused on foundation influence, behind-the-scenes decision-making, and large token holders shaping DAO outcomes.

A separate governance alignment proposal passed in December and aimed to connect Uniswap Labs, the Foundation, and the DAO more closely. It included plans to add protocol fees, buy UNI tokens with proceeds, remove tokens from circulation, and support protocol growth.

Meanwhile, the current vote has drawn split support. So far, 53% of voters favor returning the tokens, 46% have chosen to abstain, and only a negligible share has voted against the proposal.

Across DeFi, broader activity remained steady as sector TVL stood at $85.86 billion, up 0.92%. Lido led with $21.55 billion in TVL, followed by SSV Network at $17.52 billion, Aave at $15.27 billion, Spark at $9.13 billion, and Binance staked ETH at $8.81 billion.

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