Uniswap funds DAO incentive improvement project

Financial modeling level Gauntlet has been awarded a assistance from Uniswap Foundation to amended DAO inducement mechanisms, according to an announcement from Gauntlet.

— Uniswap Foundation (@UniswapFND) April 11, 2023

Gauntlet describes itself arsenic a “crypto-native fiscal hazard absorption solutions provider.” It uses economical models to optimize fees and rewards for decentralized concern (DeFi) protocols, according to the announcement. The institution is creating a caller division, Gauntlet Applied Research, which volition specifically absorption connected problems related to the increasing decentralized autonomous enactment (DAO) ecosystem.

In its announcement, Gauntlet said that it volition supply 3 pieces of probe to UniswapDAO. The archetypal volition beryllium a quantitative model that the DAO tin usage to measure the occurrence oregon nonaccomplishment of the Uniswap protocol. The 2nd volition beryllium an investigation of trader and liquidity supplier behavior, and the 3rd volition beryllium astatine slightest 3 proposals for inducement mechanisms to let the DAO to execute its goals.

Gauntlet said that it expects each 3 of these deliverables to beryllium completed by June 2023.

Devin Walsh, enforcement manager of Uniswap Foundation, expressed anticipation that Gauntlet’s probe volition assistance to amended not lone the Uniswap protocol, but besides the crypto ecosystem arsenic a whole, stating:

One of our goals astatine the Uniswap Foundation is to physique semipermanent relationships with the astir talented and values-aligned teams successful the space, and enactment with them connected the astir analyzable and absorbing questions facing the Uniswap Protocol.

DAOs person become a basal feature of the crypto system implicit the past fewer years, with DAO analytics supplier DeepDAO presently listing implicit 2,300 existing DAOs. Most DAOs are governed by token holders, who are allowed to ballot straight connected the blockchain to enactment oregon cull proposals for changes to a protocol.

However, token-based DAO governance has besides been criticized by immoderate manufacture experts, including Ethereum Founder Vitalik Buterin, who stated that this strategy could pb to “vote-buying” and “outright attacks.”

Over the past fewer months, immoderate DAOs person attempted to supply amended inducement mechanisms successful the hopes of preventing vote-buying attacks. For example, MakerDAO passed a constitution on March 27 to formalize governance processes and supply checks and balances to forestall attraction of power.