Uniswap DAO Seeks to Mobilize $6B Treasury for Growth and Sustainability

The Uniswap DAO is considering a new approach to manage its nearly $6 billion treasury, with a focus on mitigating volatility and enhancing asset utilization. The proposed formation of the Uniswap Treasury Working Group (UTWG) seeks to develop strategies for diversifying assets and finding productive investment avenues. This initiative is led by Abdullah Umar from Arana Digital and Doo from StableLab, who highlighted the treasury's current challenges and the need for strategic planning.

Currently, the Uniswap treasury is heavily concentrated in the platform's native $UNI token, raising concerns about its vulnerability to market fluctuations. The UTWG aims to undertake an eight-week research period to explore various management strategies. This will involve interviews and consultations with experts in treasury management, aiming to present at least two viable plans for the DAO's consideration.

Legal implications are a critical aspect of the proposal, emphasizing the need for clarity on issues such as taxation and liability before any strategic changes are made. The discussion around adopting a legal framework is presented as a prerequisite for the treasury management plan's implementation.

The Uniswap treasury, likened to an endowment, is intended to support the platform's long-term sustainability. The proposal argues for a diversified investment strategy to mitigate risks associated with the $UNI token's volatility. The UTWG suggests that beyond immediate operational needs, the treasury could generate revenue through investments disconnected from Uniswap's core activities.

The UTWG's proposed structure includes initial members from StableLab and Arana Digital, with plans to expand through community elections. The group requests a budget of 6,000 $UNI, with compensation aligned with the DAO's existing accountability committee rates.

A series of steps, including a Request for Comments (RFC) phase, temperature checks, and community elections for UTWG members, outline the proposed timeline for this initiative. Following the research and proposal development phase, the UTWG intends to share its findings and strategies with the Uniswap community for feedback and potential implementation.