Uniswap DAO is voting on whether to reclaim governance tokens lent to users representing $42 million in value.

CoinFeed reported on May 6th that, according to DL News, Uniswap DAO is voting on a proposal to reclaim approximately 12.5 million UNI (worth about $42 million) in governance tokens previously lent to the Uniswap Foundation and several key delegates. Erin Koen, the proposal's author and Head of Governance at Uniswap Labs, stated that Uniswap DAO lent these tokens between 2022 and 2023 to increase governance participation. The governance environment has since improved significantly, with an average voter turnout of approximately 75 million UNI, exceeding the quorum by about 88%. Reclaiming the lent governance tokens would also address the incentive misalignment issue, preventing delegates from having excessive voting power despite insufficient economic exposure. The vote will end on May 8th, with 53% in favor and 46% abstaining.