Uniswap DAO supports the 'Treasury Delegation' program worth 113 million USD to promote governance participation - Can UNI surge by 30%?

According to the preliminary governance vote that concluded on Tuesday, Uniswap DAO voted to continue the “Treasury Delegation program,” which could allocate up to 18 million UNI tokens, worth approximately $113.4 million at current prices, to selected delegates.

With the indirectly approved proposal, the details will be finalized and then ratified through an on-chain vote.

The first Treasury Delegation program of Uniswap, called “UNI Delegation for Active but Underrepresented Delegates” – will begin in December 2023. The idea is to support “active but underrepresented delegates” to vote on behalf of UNI holders.

“This program is essential for maintaining sound management and retaining dynamic, capable representatives,” the representative platform Tane wrote in its proposal, citing collected data on the performance of the previous program.

Tane noted that, after the program was initiated, “all delegates participated in all votes, which made the DAO healthier.”

If the new delegate sponsorship program is approved, about 12 selected delegates will receive 1 million UNI tokens to encourage them to participate in governance. An additional 1 million tokens will be awarded to the “top” delegates, determined by “objective criteria”, which include maintaining a minimum voting participation rate of 80% over the past three months.

Although the vote has passed the “temporary check”, the Uniswap community is still not fully in agreement on the program. Only 60% of the voting power supports the program while nearly 30% did not participate. Tane’s proposal includes a plan to assess the effectiveness of the program on a rotating three-month basis.

The latest discussion on governance comes after the controversial $165.5 million funding program for the Uniswap Foundation and a new funding program for Unichain alongside Uniswap v4 over the next two years.

Meanwhile, UNI, the native token of Uniswap, seems to be rising in price and is preparing for a strong upward trend after a prolonged price decline.

The change in mentality occurs when the overall market begins to experience a reversal and forms a recovery action.

Uniswap Technical Analysis (UNI)

According to the technical analysis of experts, UNI appears to be forming a bullish double bottom pattern on the daily timeframe.

So far, the daily chart of UNI has formed two bottoms, but this asset is still in the process of forming the second leg of the pattern.

In addition to this model, UNI has also formed a bullish divergence, where its (RSI) is creating higher lows, signaling a potential reversal.

Source: TradingViewBased on recent price action and past patterns, if UNI holds above $5.75, this altcoin could surge 15% to reach the neckline of the double bottom pattern at $7.15.

If the upward momentum continues and UNI breaks through the neckline, closing the daily candle above $7.15, the price could increase by an additional 15%, targeting $8.25 in the future.

At the moment, UNI is trading around $6.13 and has increased by more than 2% in the past 24 hours. However, due to a decrease in interest from traders and investors, the trading volume has dropped by 25% compared to the previous day.

Long position worth 2.80 million USD

With this bullish market outlook, traders seem to be predicting another price rally.

Source: CoinglassThe liquidation chart for UNI shows that traders are currently over-leveraging around $5.88 on the downside and $6.33 on the upside, with Long and Short positions valued at $2.81 million and $400,000 respectively.

A big bet on the Long side shows that traders are confident in a bullish market sentiment.

You can view the price of UNI here.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should conduct thorough research before making any decisions. We are not responsible for your investment decisions.

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Viet Cuong

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