Formation of the Ethereum Protocol Advocacy Alliance
Leading Ethereum protocols, including Aave and Uniswap, have announced the formation of the Ethereum Protocol Advocacy Alliance to promote onchain infrastructure interests globally. The alliance aims to coordinate with regulators and protect decentralized principles, potentially influencing market stability and policy development for core Ethereum assets.
The alliance's founders include Aave Labs, Aragon, Curve, Lido Labs Foundation, Spark Foundation, The Graph Foundation, and Uniswap Foundation. Their stated goal is to provide developers a voice in policy matters, supported by expertise from various advocacy groups.
Impact and Approach of the EPAA
The formation of the EPAA is expected to impact the Ethereum ecosystem significantly, potentially stabilizing investor sentiment. This initiative aligns with ongoing advocacy efforts by groups such as the DeFi Education Fund to enhance regulatory understanding of onchain systems.
Unlike traditional political action committees, no new funding is allocated specifically for lobbying. The alliance's approach focuses on technical and advocacy-based influence, prioritizing the direct involvement of developer teams in policy discussions.
Future Implications and Developer Voice
Despite its formation, no immediate changes in Ethereum's total value locked (TVL) have been observed. However, the alliance could foster future regulatory cooperation, influencing protocol assets like ETH, UNI, LDO, and AAVE over time.
Historical trends suggest that proactive advocacy can shape favorable regulations. The EPAA seeks to navigate policy with technical accuracy, emphasizing the growing maturity within the crypto space for developer-led governance and regulatory dialogue.
"The Uniswap ecosystem has faced undue regulatory scrutiny in the past—that’s why we know how critical it is for actual builders to have a seat at the table when policy for decentralized financial systems is being shaped.”