Uniswap Labs Proposes $74m Ecosystem Development Fund

• Uniswap Labs proposes to create a non-profit foundation 
• He will support projects aimed at developing the ecosystem
• The estimated budget is $74 million
• Some members of the community thought the figure was too high.

On Thursday, August 4, the Uniswap Labs team came up with a proposal to create a non-profit foundation. He will support developers and projects aimed at scaling the exchange. However, the project has faced criticism from members of the community. 

The initiative is a collaborative idea between Devin Walsh of Uniswap Labs and Kenneth Angie, head of the site’s grants department. It is assumed that the created fund will contribute to the development of the exchange. 

The Uniswap Foundation will be based on the UGP. Anyone can apply for a grant from the fund, but only projects directly related to the ecosystem will be considered. 

If accepted, the Uniswap Foundation will be registered in Delaware, USA. Walsh will lead the new division, while Angie will take over as chief operating officer. 

The planned budget of the project is $74 million in UNI tokens. Of these, 60 million will go to finance startups, and another 12 million are “operating expenses” for a team of 12 people. 

Community Reaction

Uniswap founder Hayden Adams back the project. According to him, the fund will become another group that will make every effort to ensure that the protocol “ thrives.” 

But, despite this, among the community members, some are against this idea. This is how, for example, Adam Cochran, partner of Cinneamhain Ventures, commented on it:

“So, I don’t mind the foundation itself. Moreover, the project is well planned. But $60 million seems too high for the grants department at this stage. As of today, UGP has only committed about $7 million to fund projects that are, frankly, underwhelming.”