Uniswap Foundation aims to secure an extra $62 million in funding.

Decentralized exchange (DEX) Uniswap is initiating an on-chain vote to authorize the second tranche of the $74 million funding for its developer, the Uniswap Foundation.

As per the announcement made on September 27, the second funding tranche, which includes a 10% buffer for price fluctuations, is valued at approximately $62 million and will be determined through an on-chain vote scheduled for October 4. If the vote passes, the funds will be allocated for operational expenses and research grants. The Uniswap Foundation is tasked with enhancing core protocol metrics, fostering innovation, and aligning the interests of stakeholders involved with the widely-used DEX.

Developers indicated that in the upcoming year, they intend to create a software development kit for Uniswap V4 and facilitate its subsequent transition, having already secured $17.3 million in the first tranche for this objective. The Uniswap Foundation team noted that the funding request was divided into two parts to allow additional time for registering its legal entity and obtaining non-profit 501(c)4 status from the Internal Revenue Service, which developers assert was completed in the spring prior to receiving the larger payment.

Over the past year, the Uniswap Foundation reported a total expenditure of $4.8 million on research grants, $3.15 million for operational costs, and a $1.29 million loss in capital due to the market downturn of Uniswap (UNI) tokens between the initial governance proposal and the receipt of funds. “The UF has $53.2 million in grant capital remaining to distribute. We aim to allocate $10-$15 million annually, with the disbursed amount expected to increase over time,” developers stated.

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