- As of 2023, the Uniswap Foundation has $45.26 million in assets, which was allocated for operations, grants, and personnel rewards until 2025.
- In response to SEC pressure, there will be large DAO donations, operational adjustments, and a focus on research and development as well as community growth in 2023.
The Uniswap Foundation announced that it would be releasing financial updates on a regular basis, echoed by popular crypto journalist, Colin Wu.
The first post will be a detailed account of the foundation’s operations for the year that concluded on December 31, 2023. An important step toward more openness in the decentralized finance (DeFi) space has been taken with this endeavor.
The Uniswap Foundation released its annual operating status as of December 31, 2023, holding 45.26 million US dollars and stablecoins and 780,000 UNI. USD cash and stablecoins will be used for grants and operational activities, and UNI will be used for employee token rewards. $30…
— Wu Blockchain (@WuBlockchain) May 4, 2024
An Overview of Uniswap Finances for 2023
The Uniswap Foundation stated that as of December 31, 2023, it possessed significant assets of $45.26 million, which included USD and stablecoins in addition to UNI 0.78 million.
The fiat reserves are mostly used for grantmaking and operational activities, and the UNI tokens are reserved for employee token awards. These funds are dedicated for a variety of strategic goals.
The Foundation has provided an overview of its financial obligations to the end of 2025, with $30 million set aside for awards and liquidity mining in 2024 and 2025. The remaining $1.5 million from earlier agreements will be distributed, and $13.75 million will be used to pay for running costs until the end of 2025.
The Foundation allocated $3.16 million to previously committed grants and $2.93 million to new awards in 2023 alone. Additionally, $0.36 million was awarded for legacy UGP grants, which the Foundation acknowledged as committed in 2023 after assuming them at the time of its founding.
A strategic funding pivot occurred in 2023, with a notable move from the Protocol Growth: Interfaces, DevX, and Integrations category to more substantial commitments in the R&D: Protocol and Incentive Programs categories.
Additionally, funding for Governance Stewardship, Protocol Growth: Protocol Development, and Community Growth was increased. This realignment is a component of a larger strategy modification that reflects updated award categories and was put into effect in early 2024.
In 2023, the DAO contributed a substantial $43.41 million to the Foundation, while operation costs came to $3.56 million. Payroll, professional and contract fees, office and outside event costs, marketing and advertising, insurance, and hackathon sponsorships were all included in these costs.
Context of the Market and Outside Influences
In light of shifting market conditions, financial planning and strategic modifications are made. As of the time of writing, the price of UNI was roughly $7.55, raise 6.44% from the previous day and down 2.21% from the previous week, according to CoinMarketCap.
Furthermore, Uniswap earlier raised its trading fees from 0.15% to 0.25% in response to pressure from the SEC, a move that reflected the larger regulatory difficulties the DeFi industry was facing, as previously reported by ETHNews.
Then, the Uniswap Foundation will include a summary of the first quarter of 2024 in its subsequent financial report. This will include information on new grant commitments and payments, operational costs, and an updated financial situation summary.