- An imminent on-chain vote on a proposal to create a new fee structure was announced by the Uniswap Foundation.
- The announcement has prompted a large spike in the value of the UNI token by over 20% during the last 24 hours.
- The Foundation also disclosed its Q1 2024 financial reserves, which as of March 31 included assets valued at approximately $41 million.
- The Uniswap Foundation declared that a proposal to create a new fee mechanism will be put to a vote on the blockchain by May 31.
The announcement has increased the value of UNI, the native token of the network, by more than 20%.
A critical step toward establishing autonomous fee collection and distribution in Uniswap V3 pools was delineated by the Uniswap Foundation.
To increase governance engagement, the Uniswap Foundation suggested in February a fee compensation scheme for holders of UNI tokens.
Despite possible legal challenges against the DeFi protocol from the US Securities and Exchange Commission (SEC), initial answers indicated substantial support for the concept.
Historically, liquidity providers (LPs), the companies who provided the platform with assets, received all of the fees that Uniswap produced. The new proposal intends to split protocol fees amongst holders of delegated and staked UNI tokens. so encouraging involvement inside its ecosystem through incentives.
Uniswap received fees of about $3.2 million in the last 24 hours, or $3.4 million on average, over the previous week, according to CryptoFees. About thirty percent of all trades in the decentralized finance industry are handled by the protocol.
In a related move, the Uniswap Foundation said that, as of the conclusion of the first quarter, it had 730,000 UNI tokens and $41.41 million in fiat and stablecoins. The Foundation awarded $2.79 million in previously pledged awards during this time, in addition to $4.34 million in new grants.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
