Étienne Girard
The Uniswap DAO has voted in favor of extending the Delegate Reward Initiative, according to a proposal approved on the blockchain governance platform Tally. An additional $540,000 in UNI tokens has been allocated to fund Cycle 3 of the program, which aims to enhance the quality and engagement of Uniswap’s governance system.
Designed as a compensation mechanism, the initiative provides financial incentives to top-performing delegates—individuals or entities responsible for voting on behalf of Uniswap token holders. Under the program, selected delegates can receive up to $6,000 worth of UNI tokens per month, ensuring continued governance participation.
The latest governance vote took place between Feb. 26 and March 4, 2025, securing 47.51 million votes (99.45%) in favor. With approval granted, the proposal is now in a “queued” state, awaiting an official execution date, pending the timelock period.
While onchain governance and decentralized autonomous organizations (DAOs) are structured to foster democratic decision-making, their effectiveness is often challenged by low participation rates. The Delegate Reward Initiative seeks to boost engagement and transparency by rewarding active participants, encouraging more consistent voting participation and a responsive governance structure.
One of Uniswap’s most divisive governance debates has been the potential activation of the “fee switch,” which would redirect a portion of trading fees from liquidity providers to UNI token holders. Uniswap’s founder, Hayden Adams, previously emphasized that the fee switch remains under the governance system’s control, requiring a community-driven decision.
Evolution of the Incentive Program
The Delegate Reward Initiative was initially proposed by StableLab in February 2024 and officially launched in June 2024 after extensive research by an eight-member working group.
According to the latest proposal, Cycle 1 proved successful, with all 12 selected delegates maintaining a 100% voting participation rate during that period. Additionally, the presence of financial rewards attracted new delegates to Uniswap’s governance structure.
What’s New in Cycle 3?
The newly approved Cycle 3—proposed by @Doo_StableLab, @PGov, @AranaDigital, and @seedgov—expands the initiative to include 15 delegates. These individuals will be selected based on an updated points-based system, incorporating objective metrics such as:
- Voting participation history
- Proposal authorship
- Community engagement
Delegates can earn up to $3,000 per month in UNI tokens by maintaining at least 80% participation relative to the number of submitted governance proposals. Additionally, an extra $3,000 reward is available for those who provide vote rationales, further enhancing governance transparency.
Who Participated in the Vote?
Data from Tally indicates that active delegates such as FranklinDAO, Michigan Blockchain, and Wintermute Governance played significant roles in the voting process. However, former delegates like Gauntlet and Stanford Blockchain, despite being inactive, also supported the proposal. The overall voter participation rate for the proposal stood at 24%.
With the expansion of Uniswap’s governance rewards, the initiative aims to sustain high participation levels while attracting new delegates, further strengthening the decentralized decision-making process of one of the leading DeFi protocols.
