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Is there anything provided by DAO that makes Uniswap runnable by fewer people? How many people would they need if they didn’t run like you say?

by herval 5y ago

chrisco255 5y ago
Yes, the DAO has aligned the community around Uniswap. By distributing governance over the protocol to their early users and community, they've grown to the size that they have. The liquidity providers and the traders have ownership of Uniswap. They now have a $7.5 billion treasury at their disposal, that they get to vote on how to spend based on their percentage of UNI token holdings.
- herval 5y ago
  So.. they capitalized on the hype around the technology and crowdfunded? From the past comment, I was hoping there’s any benefit to DAO itself that’d make an enterprise this size easier to run - you could technically achieve the same with a kickstarter campaign or a gofundme? Of course, the obvious orders-of-magnitude in value would be different, but that’s inherent to crypto’s inflation, not really due to any virtue of DAO?
  - chrisco255 5y ago
    No, they didn't crowdfund their token. They gave away their token to the early adopters, the users, and the liquidity providers on their platform: https://acceptingcrypto.net/uniswap-token-launch-uni/ https://acceptingcrypto.net/uniswap-token-launch-uni/ They were already live for 2 years by the time they gave away their governance token. Even if you had just done one transaction with Uniswap, you received some UNI. Now, those customers and those liquidity providers are aligned with the future success of Uniswap. They also get to vote on how to spend the $7.5B treasury. Pretty cool model. It's fundamentally different than anything that's come before it. Pay attention to DAOs.
    - inter_netuser 5y ago
      How is this any different from a corporation? At least with corporations you have legal recourse, minority shareholder protections, well developed body of law, and so on.
  - inter_netuser 5y ago
    It also so happens that the early users just so happen to be developers themselves, and hold a Yes, you can achieve the same with crowdfunding/crowdsale - but then you have a corporation and regulations, and the pesky anti-dilutive and other protections of minority shareholders and so on. Governance token should be just called what it is - equity.
inter_netuser 5y ago
It's just regulatory arbitrage. What uniswap is doing is quite likely illegal under current laws. Please note: This is an opinion of some legal scholars on their situation. I am not making any moral or ethical judgements here, couldn't care less.

Is there anything provided by DAO that makes Uniswap runnable by fewer people? How many people would they need if they didn’t run like you say?

by herval 5y ago

Is there anything provided by DAO that makes Uniswap runnable by fewer people? How many people would they need if they didn’t run like you say?

chrisco255 5y ago

Yes, the DAO has aligned the community around Uniswap. By distributing governance over the protocol to their early users and community, they've grown to the size that they have. The liquidity providers and the traders have ownership of Uniswap. They now have a $7.5 billion treasury at their disposal, that they get to vote on how to spend based on their percentage of UNI token holdings.

herval 5y ago
So.. they capitalized on the hype around the technology and crowdfunded? From the past comment, I was hoping there’s any benefit to DAO itself that’d make an enterprise this size easier to run - you could technically achieve the same with a kickstarter campaign or a gofundme? Of course, the obvious orders-of-magnitude in value would be different, but that’s inherent to crypto’s inflation, not really due to any virtue of DAO?
- chrisco255 5y ago
  No, they didn't crowdfund their token. They gave away their token to the early adopters, the users, and the liquidity providers on their platform: https://acceptingcrypto.net/uniswap-token-launch-uni/ https://acceptingcrypto.net/uniswap-token-launch-uni/ They were already live for 2 years by the time they gave away their governance token. Even if you had just done one transaction with Uniswap, you received some UNI. Now, those customers and those liquidity providers are aligned with the future success of Uniswap. They also get to vote on how to spend the $7.5B treasury. Pretty cool model. It's fundamentally different than anything that's come before it. Pay attention to DAOs.
  - inter_netuser 5y ago
    How is this any different from a corporation? At least with corporations you have legal recourse, minority shareholder protections, well developed body of law, and so on.
- inter_netuser 5y ago
  It also so happens that the early users just so happen to be developers themselves, and hold a Yes, you can achieve the same with crowdfunding/crowdsale - but then you have a corporation and regulations, and the pesky anti-dilutive and other protections of minority shareholders and so on. Governance token should be just called what it is - equity.

inter_netuser 5y ago

It's just regulatory arbitrage. What uniswap is doing is quite likely illegal under current laws. Please note: This is an opinion of some legal scholars on their situation. I am not making any moral or ethical judgements here, couldn't care less.