Uniswap-endorsed DeFi Education Fund Sells $10 Million Worth of UNI Tokens, Sparks Rage in the Crypto Community
The De-Fi Education Fund, which was created just a short while ago, has come under attack after it announced that it had liquidated 50% of the 1 million UNI tokens it had received through UNI governance.
The contentious Uniswap-funded DeFi Education Fund liquidated the donations into stablecoins- a move that has drawn criticism from the crypto society.
On 12th June, 2021, the fund made it known to the public through twitter that it would be selling 500,000 UNI. The buyer of the tokens, Genesis Trading, purchased them for 10.2 million USDC through an over-the-counter transaction.
The fund took this move despite having declared earlier that it would only liquidate the donations after a period of four to five years.
About two months ago, Harvard Law Blockchain and Fintech Initiative, a student organization, came up with a governance proposal requesting that the fund be launched and 1 million UNI to be allocated to the entity to assist in educational initiatives.
In early July, the proposal was approved and the UNI tokens were allocated to the fund.
This occurrence has sparked concerns over the centralized form of governance that controls Uniswap. It’s also brought to question the transparency and objectives of the fund.
Blockchain investigators managed to uncover the fact that Larry Sukernik, one of the individuals who co-signed on the education fund, had also sold 2,612 UNI tokens. This happened just a couple of hours before the OTC transaction.
Sukernik, on his part, defended himself alleging that the tokens he sold came from a grant that he got a couple of weeks ago.
In an interview, Chris Blec, a DeFi watch founder, insisted that Harvard Law initially claimed that its plan was to sell the 1m tokens over a 4-5 year period. This is contrary to what they did, which was essentially to use huge chunks of the amount all at once.
Blec was particularly unhappy with the fact that the fund was yet to give a valid explanation for what they’d done. He also proposed that Sukernik should resign from the fund’s committee.