A DeFi lobby group, which received $20 million in funding earlier this month from the decentralized exchange Uniswap’s governance treasury, sold half of its funding on Tuesday — despite the group promising that it would allocate the funds over the next few years, not days.
“The proposal outlines that these funds are anticipated to be allocated over the next 4-5 years, so it won’t have the same dilutive effect of selling 1M UNI all at once, which we agree would be a problem,” wrote a representative of the “DeFi Education Fund” in Discord, ahead of the on-chain vote.
Yet it announced — just eight days after receiving the funds — that the group has sold 500,000 UNI for just over $10 million of the U.S. dollar-backed stablecoin USDC, presumably to fund its plans.
This move caused surprise and consternation in the Ethereum community, which expected the large supply of tokens to be sold more gradually, and it highlighted the lack of any enforceable conditions tied to the grant money.
Where did the idea come from?
The idea for the lobby group was suggested by Harvard Law’s Blockchain and Fintech Initiative on May 27 and was described as a political grants committee with board members who are legal and policy experts.
On June 1, the group submitted a longer proposal for the entity, which it plans to turn into a 501(c)(4) “policymaking machine.” The main goal was to lobby for regulatory clarity for the DeFi industry. It said that the 1 million