Uniswap DeFi Governance Battles

If you remember a few days ago I wrote about a proposal that passed about Uniswap going on to the BNB network. You can read about that here Uniswap Moving To Binance?

New proposals coming out in order to get to that point are now stirring up a lot of debate on just how decartelized uniswap is or just about any platform really.

This comes up now with seeing large token holders and VCs like the one you see below casting massive votes towards the next or new direction of uniswap. It starts to open up questions and start to question just how decentralized are these systems and what is the cost of doing things now. In a perfect world people would all use their own money and have just about the same amount of money or at least semi close and not so extreme on one end or the other. However that simply just wont ever happen so how do we deal with it or do we at all?

Andreessen Horowitz (a16z)

Andreesen Horowitz (a16z) is a venture capital company. They currently hold a massive amount of Uniswap tokens as their buy in early on the platform.

Uniswap is looking to deploy a version of itself on the BNB blockchain (currently it runs on the Ethereum network) in order for this to happen some of the contracts currently existing need to be bridged over to the BNB chain.

The kicker here is the bridge has to be supplied by someone or a company and there's many proposals out there. What's currently in the proposals however are bridges that these companies own and who are voting up their own platform.

The Vote Weight

*Screenshot taken from https://www.tally.xyz/

One argument is no one person or company should hold such a large stake or after a certain amount the stake has lesser value. But that's short sighted and there's nothing to stop a person or company from attaching a few accounts and circumventing that.

What Fixes This?

While DeFi itself for the most part is a quality decentralized network the real issue I believe is now bridges which are fully centralized and controlled. These bridges have no governance vote to them and are seen as a increasing demand as more blockchains and applications what to bridge the gap between blockchains as smooth as possible.

This also brings us to the point of should they be open sourced and if so then a token or something to go with it. That means open source could potentially leave it up for more attacks then it's already currently going under. We constantly hear about bridge attacks all the time and millions ending up were they shouldn't.

So what are you thoughts on VC's holding massive token shares of these "decentralized" systems?

For me I only see it getting worse as VC's is what everyone screamed for in order to pump the price of bitcoin back in the day. Now that it's here is the higher dollar value we have now worth the bit of sacrifice of decentralization?

Posted Using LeoFinance ^Beta