This marks the second time that a proposal put forth by lending and savings protocol Dharma has failed to reach quorum. The first ever proposal, that suggested lowering the UNI governance proposal and quorum thresholds significantly, failed to reach the necessary votes by only 1%, while the second one failed to meet the requirement by 6%.
If it had passed, 12,619 addresses that interacted with Uniswap through a proxy contract would have received 400 UNI each, resulting in 5.05 million UNI being re-distributed from the project’s vaults. This was only Phase 1 of the proposal, and if it had passed, Phase 2 would have been put to the vote, which proposed giving 400 UNI to an additional 27,000 addresses that interacted with Uniswap through a DEX aggregator.
It remains unclear what would happen from here on out, as Dharma stated that, “should both Phases pass, we will not vote in favor of any further retroactive airdrops”, which did not happen. The firm did say that if their proposal fails, they would “accept that as the final determination of the Uniswap community”, but that does not mean they will not initiate another proposal for retroactive airdrops in the future.
In preparation for the airdrop, the price of UNI entered a downtrend after trading steadily at $3 for a couple of weeks. It has yet to react to the failed governance proposal.