Uniswap Foundation Reveals Assets and New Fee Proposal, UNI Token Soars 35% in a Week!
The Uniswap Foundation has announced an on-chain vote to establish a new fee mechanism by May 31. This news has driven the value of Uniswap's native token, UNI, up by more than 20%.
Details of the New Fee Mechanism
The proposal aims to implement autonomous fee collection and distribution within Uniswap V3 pools. If approved, the mainnet UniswapV3Factory ownership will transfer to a newly created entity, V3FactoryOwner. However, this vote won't activate the fees yet; that's planned for a future proposal.
In February, the Foundation introduced a fee reward mechanism to encourage governance participation among UNI token holders. Despite potential legal hurdles from the US Securities and Exchange Commission (SEC), initial reactions were overwhelmingly positive.
Traditionally, Uniswap's fees were distributed solely to liquidity providers (LPs). The new proposal intends to share protocol fees with staked and delegated UNI token holders, fostering more active engagement in the ecosystem.
Uniswap's Impressive Earnings
Uniswap is a major player in the decentralized finance (DeFi) sector, generating around $3.2 million in fees in the last 24 hours and averaging $3.4 million over the past week. It handles about 30% of all DeFi trades, making it one of the top fee generators in the crypto world.
Financial Disclosures and Grant Commitments
In another update, the Uniswap Foundation disclosed holding $41.41 million in fiat and stablecoins and 730,000 UNI tokens as of the end of Q1. During this period, the Foundation allocated $4.34 million in new grants and distributed $2.79 million in previously committed grants.
"The fiat cash and stablecoins will fund grant making and operations, while the UNI tokens are earmarked for employee awards," the Foundation stated.
