The Uniswap Foundation has announced that a vote on a proposal to create a new fee collection mechanism will take place before May 31. However, the announcement saw the platform’s native token UNI rise by more than 20%.
New Uniswap fee mechanism
The Uniswap Foundation has described an important step towards implementing autonomous fee collection and distribution in Uniswap V3 pools. “If the proposal is accepted, then ownership of the UniswapV3Factory mainnet will be transferred to a new instance of V3FactoryOwner. This vote will not include commissions; this will be implemented in a future proposal,” the Foundation explained.
In February, the Uniswap Foundation proposed a fee reward mechanism for UNI token holders to incentivize participation in governance. Early feedback showed strong support for the proposal, despite potential legal challenges from the US Securities and Exchange Commission (SEC) regarding the protocol.
Traditionally, all fees collected by the platform went to liquidity providers (LPs). The new proposal plans to distribute protocol fees to UNI holders who stake tokens.
According to CryptoFees, Uniswap earned approximately $3.2 million in fees in the last 24 hours, with an average of $3.4 million over the past week. The protocol processes approximately 30% of all transactions in the decentralized finance sector.
In parallel, the Uniswap Foundation disclosed that at the end of the first quarter it had $41.41 million in fiat and stablecoins, as well as 730,000 UNI tokens. During this period, the Foundation awarded $4.34 million in new grants and paid out $2.79 million in previously obligated grants.
“Fiat USD and stablecoins will be used to fund grants and operations, and UNI will be used to fund employee benefits,” the Foundation noted.
About UNI
Uniswap is an automated liquidity protocol for exchanging ERC-20 tokens and Ethereum cryptocurrency. It is GPL licensed open source software. Allows you to trade quickly and efficiently, eliminating intermediaries. Whenever possible, most actions are based on decentralization and with resistance to censorship in mind.
However, the Uniswap (UNI) is a token released on September 16, 2020 by the decentralized exchange of the same name. On the same day, it appeared on the Binance exchange listing . Since its creation, UNI has been actively growing, developing and self-sustaining under the full control of the community. The implementation of UNI (ERC-20 token) is necessary mainly to support the governance principles that help the protocol continue to develop further. UNI is released with the goal of ultimately turning it into a self-sufficient and autonomous infrastructure by supporting the principles of self-government.
