Uniswap Will Hold On-Chain Voting on May 31

Bittime - On May 31, 2024, the Uniswap Foundation will hold an on-chain vote to determine a new fee mechanism or fee that will increase the price of the $UNI token by more than 20%. $UNI token holders will receive protocol fees, increasing governance participation.

Uniswap Will Hold On-Chain Voting

The Uniswap Foundation announced an on-chain vote on a proposal to establish a new fee mechanism. Voting will start on May 31, 2024. This announcement was apparently able to increase the price of $UNI, Uniswap's native token, by more than 20%.

Influence of Uniswap's New Fee Mechanism

An important step towards implementing autonomous fee collection and distribution in Uniswap V3 pools was demonstrated by the Uniswap Foundation. This proposal will transfer ownership of the Uniswap V3 Factory mainnet to a new V3 Factory Owner instance if approved. That's when the fee will be applied to the next proposal once this voting is complete.

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Uniswap Foundation Has Proposed New Fees From Last February

In fact, last February, the Uniswap Foundation proposed a reward or fee payment mechanism for $UNI token holders in the hope of increasing governance participation. 

Although the United States Securities and Exchange Commission (SEC) could easily sue DeFi protocols, it is unexpected that this proposal has received a lot of support.

$UNI Token Holders Will Get Protocol Fees

Currently, all the money Uniswap generates goes to liquidity providers (LPs), those are the parties who provide their assets to the platform. In the latest proposal, $UNI token holders who stake and delegate will receive protocol fees. In addition, it is hoped that this plan will increase active participation in the Uniswap ecosystem.

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Performance Analysis Generated by Uniswap

According to CryptoFees, Uniswap generated around US$3.2 million in fees in the last 24 hours and averaged US$3.4 million in the past week. So far, around 30% of trades in the decentralized finance (DeFi) sector have been handled by the Uniswap protocol.

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Conclusion

The Uniswap Foundation announced an on-chain vote to establish a new fee mechanism that will begin on May 31, 2024 and increase the price of the $UNI token by more than 20%. The purpose of this mechanism is to transfer ownership of the Uniswap V3 Factory mainnet to a new Owner V3 Factory instance, so that fees can be applied after voting is complete. 

The goal of the proposal, first put forward in February, is to increase governance participation by providing rewards or fees to $UNI token holders who delegate and stake. Uniswap generates around US$3.2 million daily and handles around 30% of trades in the free financial sector today.

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Read more:

Uniswap Foundation Launches On-Chain Voting on May 31, Prizes for UNI Holders?

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DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.