Uniswap Stands Firm on Business Source Licensing Amidst Criticism

The crypto community has voiced strong discontent towards Uniswap DEX, accusing it of falsely labeling its V4 as open source. The criticism reflects concerns about transparency and adherence to open-source principles within the project, raising questions about the platform’s integrity.

In a recent Youtube video, Uniswap, the decentralized exchange, stood by its decision to implement Business Source Licensing (BSL) for its V4. Noah Zinsmeister, the Engineering lead at Uniswap Labs, explained that this choice strikes a delicate balance between fostering innovation and providing temporary proprietary rights.

Under the BSL, the source code is protected for a limited period, allowing Uniswap to incentivize advancements while maintaining control. Zinsmeister further emphasized that after four years, the code will transition to the General Public License (GPL), ensuring wider accessibility and openness to the community.

The sort of proprietary license or the non-open source aspect of the USL is really just intended to prevent the very low effort forks that are honestly kind of not bringing value to anyone.

The recent unveiling of Uniswap V4 has sparked a contentious debate within the crypto community due to the licensing choice made by the Decentralized Exchange (DEX). Many community members have criticized the DEX for misleadingly labeling V4 as open source when it is protected by the Business Source License (BSL).

The essence of an open-sourced project lies in its unrestricted accessibility, allowing users to freely examine, modify, and enhance the source code without legal barriers. However, the BSL associated with Uniswap V4 imposes limitations on using its source code in commercial or production settings for up to four years.

This implementation raises valid concerns about copyright issues, as it contradicts the fundamental principles of open-source development and the collaborative spirit that defines the crypto space.

Community Expresses Concerns About Open-Source Assertions

Lefteris Karapetsas, the founder of Rotkiapp, emphasized the importance of using accurate terminology and not demeaning open-source projects. He refuted that Uniswap v4 is open source, stating that only the V4 periphery qualifies as such. Gabriel Shapiro, the general counsel at Delphi Labs, criticized BSL (Business Source License) as a hindrance to innovation in the industry.

He argued that anyone who examines the code and develops something similar could face potential copyright claims. Shapiro also highlighted the advantage Uniswap enjoys by not protecting its code with copyleft licenses. However, the fact that Uniswap is now safeguarding ideas it received for free from others emphasizes the necessity for more projects to embrace open-source principles and employ copyleft licenses.

The crypto enthusiast Amir said,

BSL-licensed software does not meet the Open Source Initiative’s definition of open-source software until it transitions to an OSI-approved license. Labeling a BSL-licensed project as “open-source” from the beginning could be misleading, despite the transparency provided by code visibility.

Uniswap founder Hayden Adams revealed a significant shift in their development approach as he explained the rationale behind building Uniswap V4 in public. Unlike its predecessors, which were developed behind closed doors, this new version embraced transparency.

By allowing the public to witness the development process, Uniswap aimed to foster trust and ensure a more inclusive and community-driven protocol. Adams acknowledged the importance of openness, ensuring that the code wouldn’t be frozen before making any announcements this time around.

Read more: 

• 93.3% Of The Uniswap Community Voted For Uniswap’s Deployment
• The Uniswap Community Wants a Foundation For Development