- Uniswap DAO unanimously approved the new governance system, with 61 million UNI in favor.
- The proposal aims to reduce the amount of friction by removing the first off-chain poll.
- Uniswap price is keeping above the $5 mark, and an increase in buying pressure will push the price upward towards $6.40.
Uniswap has been known for its attempt at pushing the boundaries of community participation for a long time. Uniswap’s parachains are one of the best examples of how a successful Decentralized Autonomous Organization (DAO) operates. Following the same notion, the community is now looking to alter the entire governance process.
Uniswap changes proposal approval
After a week of voting, the Uniswap community voted in favor of the new governance proposal with 61 million UNI. The reason given behind this alteration is so that the amount of friction in the voting process is reduced.
To achieve this, the DAO approved removing the first off-chain Snapshot poll as well as increasing the quorum for the remaining off-chain polls from 5 million UNI to 10 million UNI. The proposal noted,
“While the governance process put in place today has, for the most part, been successful in achieving those goals, we believe improvements can be made to reduce overhead and to enhance off-chain signaling prior to the final governance vote.”
The proposal has been spearheaded by the Uniswap Foundation, which was established four months ago. Through the Foundation, the team intends to support developers in the Uniswap ecosystem as well as simplify the governance process.
Uniswap price looking for a rally
Uniswap price is currently trading at $5.30 after bouncing off of its immediate support level at $4.99 this week. The cryptocurrency has been maintaining this level as a support floor for more than a month now, and this could help UNI in initiating a recovery.
For the same, the altcoin will have to note some buying pressure as selling has been much more dominant over the last three weeks. The Relative Strength Index (RSI) verifies the same as the indicator marked an uptick after almost slipping toward the oversold zone.
UNI/USD 1-day chart
If Uniswap price manages to breach the immediate resistance at $5.49 and flip $5.85, into a support floor, UNI would be able to initiate a recovery rally and tag $6.39.
However, if the broader market bearish cues dominate the price action and the altcoin slips, it would end up tagging the support at $4.99. Uniswap price will find an opportunity to bounce off of the critical support at $4.50 in case it declines further. But if UNI marks a daily candlestick close below this level, the bullish thesis will be invalidated, and the cryptocurrency could descend toward the lows of $3.62.