Core member Pepo announces withdrawal from Uniswap DAO: Decentralization has become a performance.

Crypto Circle (120BTC.COm) News: The decentralized exchange ( DEX) giant Uniswap's decentralized autonomous organization Uniswap DAO's main contributor, known by the pseudonym Pepo, publicly announced on May 5th on X platform that he has officially withdrawn from Uniswap DAO, triggering widespread discussions in the industry regarding Uniswap's governance structure.

Pepo's Statement on Withdrawal Reason: The Foundation Ignored DAO Opinions

It is understood that Pepo has been participating in the governance of Uniswap DAO since 2023, holding 455,000 UNI tokens, making it one of the top 20 representatives and actively voicing for the governance of the DAO.

However, in a lengthy article published on May 5 on platform X, he elaborated on his reasons for leaving, accusing other organizations involved in the operation of Uniswap, particularly the non-profit organization Uniswap Foundation, of ignoring the opinions of DAO members and being unresponsive to feedback. Here are Pepo's main accusations:

• The foundation prioritizes self-protection, harming Uniswap: Pepo stated that the foundation's actions focus more on "self-protection rather than cooperation," which may have caused actual harm to Uniswap.
• Limited voice, consequences of criticism: He pointed out that there are "functional limitations" in the voice within the DAO, and critical opinions may lead to "the door quietly closing, and relationships cooling for no reason." He questioned: "Can a representative oppose a foundation-led proposal while still expecting fair interaction?"
• Governance has become a formality, lacking accountability: Pepo believes that Uniswap's governance has turned into "a performance," where outcomes are shaped before proposals are made, and community opinions are only used to "validate" rather than "reference." He warns: "Decentralization without accountability is just a drama. And the drama will ultimately collapse due to its own fiction."
• Loyalty is punished, and exiting becomes the only choice: He lamented that his voice has been diminished, and loyalty is punished, leading to exit being the "only choice that does not compromise oneself." He wrote: "I no longer endorse a system that refuses to earn trust."

Non-First Controversy: Uniswap DAO Rights Are Frequently Questioned

In fact, Pepo's exit is not the first controversy caused by governance issues within the Uniswap DAO. As early as October 2024, Billy Gao, the vice president of the Stanford Blockchain Club, publicly criticized Uniswap Labs for unilaterally announcing the launch of their own blockchain, Unichain, without sufficient discussion with the DAO, questioning its level of Decentralization. He stated, "This raises questions once again about how decentralized Uniswap's governance really is."

In addition, there are also dissatisfied voices within the community regarding the transparency of the Uniswap Foundation's fund usage. Some representatives complain that the foundation lacks openness in its expenditures and decision-making, and that major decisions are often made behind the scenes by a few representatives reaching a consensus privately, with public voting being merely a formality. Doo Wan Nam, co-founder of the DAO governance solution provider Stable Lab, has also stated that while there has been some improvement in transparency and communication, it is still not sufficient to meet the expectations of some representatives.

The Significance of Pepo's Departure: A Warning Signal of DAO Governance Crisis

Pepo, as one of the most active representatives in the Uniswap DAO, is viewed as a significant loss upon his departure. For example, a community member commented on platform X: "Pepo is an active participant that the DAO should cherish, and his departure is a great loss for Uniswap."

It is also worth mentioning that although the Uniswap Foundation established the "Foundation Feedback Group" on May 1 to try to improve communication with the DAO, Pepo's departure indicates that the issues remain unresolved. Industry insiders are concerned that if Uniswap cannot effectively respond to community demands, its credibility as a Decentralization protocol may be compromised, which could affect the confidence of UNI token holders and the long-term development of the ecosystem.

In summary, Pepo's exit event is not only a reflection of the internal conflicts between the Uniswap DAO and the foundation but also highlights the common challenges faced by DeFi protocols in decentralized governance. How Uniswap will balance the powers of the DAO, the foundation, and Uniswap Labs in the future will be the focal point of attention for the community and investors.