Uniswap's Decentralized Autonomous Organization (DAO), holding assets valued around $6 billion, including the UNI token, encounters significant challenges such as lack of diversification and a coherent strategy for asset utilization. In response, a proposal emerges to form the Uniswap Treasury Working Group (UTWG) to tackle these pressing issues effectively.

The UTWG Initiative Overview

The UTWG endeavors to explore diverse treasury management tactics over an eight-week duration, drawing insights from experts and successful approaches employed by other DAOs like Maker, Aave, Lido, and Gnosis.

Addressing the legal ramifications of these strategies, encompassing tax implications, and ensuring adherence to regulations stand as paramount concerns. Establishing a legal framework will be pivotal for executing these strategies, with proposals open for solicitation from service providers.

Comprising four members, the UTWG has already appointed two individuals from StableLab and Arana Digital, possessing governance and decentralized finance (DeFi) protocol expertise. The remaining two members will be elected through Snapshot voting, joining WG0 for research and presentation of findings to the DAO.

The members' duties include conducting extensive research on treasury management initiatives, analyzing case studies from other DAOs, and exploring potential legal frameworks.

Compensation and Budget Allocation

With a proposed budget of 6,000 UNI tokens for the UTWG, members will receive an hourly wage of $200, akin to the Accountability Committee. Retroactive compensation will be dispensed based on entry hours post an on-chain vote for WG0.

While the UTWG aims to propose treasury management options, execution hinges on establishing a legal framework. The plan entails soliciting options through Requests for Comments/Proposals (RFC/RFP) to engage various treasury managers. Collaboration with legal experts is envisioned to ensure compliance throughout the process.

Conclusion

The establishment of the UTWG marks a pivotal step towards enhancing Uniswap's financial management, aiming to address critical challenges and optimize asset utilization. With a structured approach and collaboration with experts, Uniswap endeavors to navigate these challenges and pave the way for sustained growth and resilience in the decentralized finance landscape.