Grow Uniswap on Plasma

Voting Options: Allocate $250k, Don’t Allocate, Abstain —--------------------------------------

This post intends to accomplish two purposes:

• Publicly signal the UAC’s intent to eventually allocate $250k from the incentives discretionary budget to the Plasma deployment. This is tranche 1.

• Collaborate with Plasma to request an additional $250k from the treasury via the customary governance path (RFC, Snapshot, Onchain vote). This vote pertains to tranche 2.

READ THE FULL PROPOSAL ON THE FORUM.

Incentive Structure & Timing:

Goal: Plasma allocates $3-5M in XPL incentives over 6 months, while Uniswap co-incentivizes with $500k UNI.

• Plasma’s commitment: Deploy up to $5M in incentives over six months, tied to the XPL token price. A minimum of $500k/month is guaranteed, ensuring at least $3 million total if XPL declines.

• Uniswap’s discretionary tranche ($250k): Allocated from the UAC’s incentives discretionary budget. Currently unallocated due to pending legal review.

• Catch-up mechanism: Once the UAC is able, it will “catch up” to Plasma by distributing the full $250k within the remaining months (e.g. if legal review takes 1 month, the UAC will allocate $50k/month over 5 months instead of $41.6k/month over 6).

• Parallel Plasma incentives: Plasma agreed to begin allocating incentives on day-one, before the DAO is able to allocate capital on its end. XPL incentives have been live since September 25 and can be viewed here. TVL has currently reached $56M, with over $1B in volume since launch.

• Second tranche ($250k): The discretionary budget has a $250k cap, so we are requesting a $250k match from the DAO treasury. This snapshot pertains to the second tranche.

Allocation Breakdown:

Once able, Uniswap will begin abiding by the following allocation:

• XPL/USD₮0 - 20% of incentives

• USDe/USD₮0 - 25% of incentives

• ETH/USD₮0 - 25% of incentives

• weETH/USD₮0 - 20% of incentives

• XAUT/USD₮0 - 10% of incentives

Uniswap's allocation will differ from that of Plasma, which has a heavy focus on XPL/USD₮0:

• XPL/USD₮0 - 70% of incentives

• ETH/USD₮0 - 10% of incentives

• weETH/USD₮0 - 10% of incentives

• XAUT/USD₮0 - 10% of incentives

Some of the Plasma incentives may also be allocated to pools focused on ecosystem-native assets such as Axis, Daylight, Uranium Digital, and other unannounced issuers.