On February 23, 2024, the Uniswap Foundation made a surprising announcement regarding the latest governance proposal concerning the protocol’s fee mechanism. According to the proposal, Uniswap could reward delegated or staked UNI holders. If unchanged, a snapshot vote will be conducted on March 1, followed by an on-chain vote on March 8.
This isn’t the first proposal regarding fee sharing for UNI holders. Most recently, in May 2023, Gate Hill proposed fee pool liquidity and rewards for UNI holders, which resulted in a controversial vote as some UNI holders opposed it.
However, unlike previous occasions, the proposal comes from @eek637 – Governance Lead at Uniswap Foundation, suggesting a high likelihood of its approval.
Currently, Uniswap remains the largest decentralized exchange, generating significant fees. Over the past 30 days, Uniswap generated $71.6 million in fees, second only to Lido Finance.
With the aforementioned proposal, the tokenomics of UNI undergoes a significant change. This could also serve as a pioneering move for DeFi projects to adopt similar models.
Many DeFi tokens are experiencing a surge in price following the news of Uniswap’s fee-sharing proposal.
Related: DEX Uniswap Launches Rootstock Deployed on Bitcoin Sidechain
Chart UNI after Uniswap Foundation announcement
Following the news, the price of the UNI token surged nearly 80% to $12.6 – the highest level since January 2022.
4-hour chart of UNI/USDT pair on Tradingview at 06:35 AM on February 24, 2024.
