Uniswap Foundation Proposes Major Governance Upgrade, UNI Token Surges 50%

The Uniswap Foundation (UF), the non-profit organization behind the popular decentralized exchange Uniswap, has announced a new proposal to improve its protocol governance and reward its loyal token holders.

The proposal, titled “RFC: Activate Uniswap Protocol Governance”, was published on the UF’s official forum on February 23, 2024. It outlines a plan to activate the protocol fee mechanism, which was originally designed to generate revenue for the UF, but has remained dormant since the launch of Uniswap v3 in May 2021.

According to the proposal, the protocol fee mechanism will be modified to distribute 0.05% of every swap fee on Uniswap to UNI token holders who have staked and delegated their voting rights. This means that UNI holders will be able to earn passive income from the trading activity on Uniswap, as well as participate in the governance of the protocol.

The UF argues that this change will incentivize active, engaged, and thoughtful delegation, which is essential for the long-term success and security of Uniswap. The proposal also claims that this will align the interests of the UF, the UNI holders, and the Uniswap community, as well as increase the value proposition and utility of the UNI token.

The proposal will be subject to a Snapshot vote on March 1, 2024, followed by an on-chain vote on March 8, 2024, if it receives enough support from the community. The UF states that it will abstain from voting on this proposal, and encourages all UNI holders to make their voices heard.

The announcement of the proposal has sparked a positive reaction from the crypto market, as the UNI token surged by 50% in the past 24 hours, reaching a new high in 2 years of $11, according to Coingecko. UNI is currently the 15 largest cryptocurrency by market capitalization, with a total value of over $9 billion.

UNI price in Binance exchange

Uniswap is one of the most popular and innovative decentralized exchanges in the crypto space, allowing users to swap any ERC-20 tokens without intermediaries, censorship, or KYC. Uniswap v3, the latest version of the protocol, introduced features such as concentrated liquidity, multiple fee tiers, and custom price ranges, which aim to improve the efficiency and flexibility of the platform.

The UF was established in September 2020, when it airdropped 150 million UNI tokens to all Uniswap users, marking the launch of the Uniswap governance system. The UF’s mission is to support the development, research, education, and community building of the Uniswap protocol. The UF currently holds 430 million UNI tokens, which represent 43% of the total supply.

Read more:

Join us on Telegram

Follow us on Twitter

Follow us on Facebook

Follow us on Reddit

You might also like