Uniswap Foundation has awarded a grant to financial modeling platform Gauntlet to improve DAO incentive mechanisms. Gauntlet, a provider of crypto-native financial risk management solutions, will create a new division called Gauntlet Applied Research to specifically address the challenges of the growing decentralized autonomous organization (DAO) ecosystem. It plans to deliver three pieces of research to UniswapDAO by June, including a quantitative framework for evaluating the success or failure of the Uniswap protocol, an analysis of trader and liquidity provider behavior, and at least three proposals for incentive mechanisms to help the DAO achieve its goals.
The executive director of Uniswap Foundation hopes that Gauntlet’s research will not only improve Uniswap but also benefit the entire crypto ecosystem. The rise of DAOs in the crypto economy has led to concerns over token-based governance systems, with some experts warning about vote-buying and attacks. However, some DAOs have been experimenting with better incentive mechanisms to prevent such issues.