Uniswap Turmoil Erupts: Leading DAO Delegate Severs Ties in Protest of “Insulated” Authority Seizure
A Uniswap crypto delegate referred to as Pepo has abruptly exited the DAO, criticizing the Uniswap Foundation for what he perceives as a farcical power grab.
This bold move has sparked renewed controversy within the Decentralized finance protocol, as prominent Uniswap delegate Pepo walked away from the DAO, denouncing the Uniswap Foundation for transforming decentralized governance into a top-down charade.
Pepo, who held 455,000 UNI and was ranked among the top 20 voting delegates, made his stance clear.
Uniswap Crypto Delegate Highlights Issues at Uniswap Foundation
— PEPO (@0xPEPO) May 5, 2025
In a harsh statement on X, he openly accused the Foundation of disregarding DAO perspectives, neglecting delegate criticism, and shielding itself from genuine feedback.
“The Foundation’s conduct appears to value insulation over strategic alliance, potentially harming Uniswap in the process,” Pepo remarked.
His exit signifies more than just a gesture. It serves as a warning signal to the $4B protocol, casting doubt on the true decentralization of Uniswap.
At the heart of this turmoil is the $165 million treasury grant sanctioned by the DAO in March, which critics claim is being utilized by the Foundation with concerning independence.
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UniSwap Foundation Tries to Downplay Ongoing Issues
Functioning as a nonprofit, the Foundation was intended to support the DAO. Yet, some contend it is evolving into its own authority, lacking accountability and quietly aligning with Uniswap Labs, the for-profit entity that established the network.
Delegate participation is vital for the success of the Uniswap ecosystem, and the @UniswapFND values their input.
Indeed, we are the only primary Platform Foundation funded through the explicit approval of delegates. We didn’t receive tokens at the…
— Devin Walsh (@devinawalsh) May 6, 2025
Devin Walsh, the Executive Director of the Foundation, provided the standard public relations response: “Delegate participation is crucial… we genuinely consider their feedback.”
However, the reality behind the scenes tells a different story.
Multiple sources indicate that significant decisions are being deliberated privately in back channels, negotiated among major wallet holders long before they are made visible to community discussions.
Some delegates label it “DAO theater,” where votes take place after the real decisions have already been finalized behind the scenes.
This is not the first instance of questioning decentralization at Uniswap. Last October, Stanford Blockchain Club’s Billy Gao criticized Uniswap Labs for launching its own distributed ledger without DAO involvement, deeming it a blatant governance failure.
Even the establishment of a new “Foundation Feedback Group” on May 1 hasn’t alleviated tensions. Delegates claim it’s inadequate and belated.
“It’s a wrecked for any DAO when a delegate feels that resignation is the only means to make a difference,” remarked PaperImperium from GFX Labs in comments to CoinDesk.
As UNI coin holders contemplate who is truly in charge, one thing is evident: decentralization at Uniswap is an ongoing challenge, and if it’s not merely an illusion, changes need to transpire swiftly.
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The post Uniswap Drama Explodes: Top DAO Delegate Rage-Quits Over “Insulated” Power Grab appeared first on 99Bitcoins.
