Uniswap discusses recalling $42M in UNI lent to delegates

The Uniswap DAO is discussing a governance proposal to recall 12.5 million UNI, worth $42 million, that was previously lent to its delegates, DL News reported. The tokens were loaned to the Uniswap Foundation and key delegates in 2022 and 2023 to stimulate governance activity. According to the proposal's author, the loaned tokens have served their purpose, as the governance environment is now sufficiently active. DL News added that addressing the practice of delegates voting without their own capital at stake is crucial for ensuring governance health, as it can create a misalignment between economic exposure and voting power.