Thread by @lay2000lbs

A lot of misunderstanding around UNI tokens, the protocol and the company.

Hopefully this image helps clarify.

The Uniswap protocol exists on Ethereum, it exists independent of any "interface" you might use to access it. There are LOTS of interfaces.

The UNI token governs the protocol that lives on Ethereum.

Token holders vote on any changes to the protocol.

Token holders DO NOT control any of the interfaces.

In addition to the protocol referred to as "Uniswap", there is a company that helped start it called "Uniswap Labs", that company maintains one interface that you can use to access the protocol, it's hosted at app.uniswap.org/#/

On Friday Uniswap Labs decided to limit certain tokens from being traded on their interface.

1⃣ This was not a change to the protocol and therefore does not require any UNI token vote
2⃣Anyone who wants to trade those tokens can do so on any other interface they want.

This is the correct approach and what we should expect to see as DeFi scales.

Different interfaces will specialize in providing access to different users. They will be tailored to their target market and also the regulations relevant to where the services are provided.

The crucial thing is that this happens at the interface layer NOT the protocol layer.

The protocol remains permissionless, composable, and accessible.

The irony is that while everyone is talking about this, a much more dangerous precedent is being ignored. "Aave Pro" which actually is forking the protocol and layering centralized control into the protocol itself!!

Don't worry about companies updating interfaces. Do worry about protocol forks that create liquidity silos managed by centralized gatekeepers.