Reports said that Dune Analytics, the decentralized finance (DeFi) analytics service, has voiced its opposition to a Uniswap (UNI) governance vote for “Community-Enabled Analytics” that would see fellow analytics providers Flipside Crypto managing about $25 million worth of UNI tokens.
It has been reported that Dune highlighted the lack of community attention to the matter while also stating that grants should be given to community members and not to service providers.
However, the governance voting page for the proposal showed over 41 million votes in favor, against 2.5 million in opposition. But the tides have shifted with about 46.9 million votes against the proposal. The process ended on Friday (August 20) at 7:05 AM UTC+1.
The report said that according to Dune, funding one single provider among several analytics platforms “makes no sense.”
"There is no sense for @uniswap to fund @flipside’s daily operations with eight full-time employees."
Fredrik Haga, the CEO and co-founder of Dune Analytics, said:
"This proposal is de facto giving them [Flipside Crypto] as a single provider control of the allocation committee and the oversight committee which makes little sense for driving forward UNI analytics broadly."
Likewise, the grant itself, if passed, will see Flipside Crypto receive $25 million in two annual installments of $15 million and $10 million.
Avi Meyers, the Director of Strategic Partnerships at Flipside Crypto, said:
"The root of the concern about providing service providers with grants is a fear that they may be bad actors or not contribute directly to the core community. Ironically, the entire focus of Community-Enabled Analytics is to build a community for protocols through educational programs and on-chain analysis — rewarding contributors for their efforts."
"The seven-member Allocation Committee will ensure the investment strategies properly benefit the ecosystem, while the three-member Oversight Committee will ensure that the grant is applied in a manner consistent with its design."
Moreover, according to the details shared in the proposal document, half of the yield generated by Flipside from the fund will reportedly go towards improving the Uniswap ecosystem in the form of bounties to community members. The other 50% of the yield generated by Flipside will be used to fund the platform’s operations such as payment of salaries, a provision that could be construed as a 50% management fee on earnings from a community grant.
Meyer said that the provision was necessary to enable the team to achieve the aims and objectives of the grant.
"Dune Analytics are not big UNI holders and think the Uniswap community should decide on this. The proposal was about to pass while under the radar and we wanted to bring attention to how these $25M in UNI was about to be allocated and from there we’re simply glad to see that the community is taking note, discussing and landing on their own conclusions."
Thus, Dune’s opposition to the proposed $25 million grant to its competitor is the latest controversy stemming from the apparent centralization of Uniswap’s governance.