The Uniswap Labs team has presented the community with a proposal that includes the creation of a nonprofit to support the growth of decentralized exchange. To implement the initiative, the authors demanded $74 million.

🦄 Today I am very excited to present a proposal to form the Uniswap Foundation. @nkennethk https://t.co/J8NPoHqshk

— Devin Walsh (@devinawalsh) August 4, 2022

The proposal was supported by Devin Walsh, Head of Human Resources at Uniswap Labs, and Kenneth Ng, Head of Uniswap Grant Program (UGP).

The Uniswap Foundation’s (UF) mission is to support the decentralized growth and sustainability of the protocol, its ecosystem and community. […] The organization is a natural evolution of UGP, which was launched about 1.5 years ago. MVP To support ecosystem growth,” Walsh wrote.

The UF will provide grants to developers, scientists, analysts and others involved in the development of the protocol. According to the authors, the organization will optimize Uniswap management and expand its decentralized exchange ecosystem.

The offer allows the Uniswap Foundation to be registered as a legal entity in the state of Delaware (USA). Walsh will take over as CEO, while Ng will become COO.

To create an organization, the authors asked the community for $74 million:

• $14 million at UNI – operating budget to cover the costs of a 12-person team over three years;
• $60 million in UNI – as funding for the UGP program.

Separately, Walsh and Ng have requested 2.5 million UNI tokens ($22.8 million at the time of writing) to the UF to “participate in governance primarily through delegation.”

If approved, funds will be received in two tranches. The first, $20 million, will meet the team’s two-year needs. The amount also includes annual IGP funding.

Uniswap Treasury will pay the second tranche within 6-12 months after the NF is registered as a legal entity.

The proposal was supported by the decentralized exchange team. Project founder Hayden Adams called Walsh and Ng “distinguished members of the community.” He noted that the UF will report to Uniswap Labs and contribute to the development of the protocol.

2/ The Foundation will be established as a steward working to strengthen and improve the Protocol over time. And what excites me the most is the people driving it. @nkennethk and @devinawalsh.

— hayden.eth 🦄 (@haydenzadams) August 4, 2022

But there is another opinion among members of the Uniswap community. Adam Cochran, a partner at Cinneamhain Ventures, endorsed the UF’s goals, but called it “wrong” to allocate $60 million for the grant program in the first phase.

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So I don’t mind his suggestion to create a Uniswap Foundation – and I think he has good planning.

But at this stage, $60 million was misdirected to UGP.

The Uni Grants Program has distributed nearly $7 million in grants so far, and frankly, this program has fallen short.https://t.co/Ri3VNOBh6c

— Adam Cochran (adamscochran.eth) (@adamscochran) August 4, 2022

“So far, UGP has handed out about $7 million in grants and frankly the program has not been effective enough,” he wrote.

Recall that in April 2022 Uniswap Labs established a venture division to invest in Web3.

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