Uniswap Foundation has announced an on-chain vote for a new fee mechanism proposal, with voting ending on May 31.
The Uniswap Foundation announced that it will hold an on-chain voting for a proposal to build its new fee mechanism. The deadline for voting is May 31. In the past twenty-four hours, the value of the network’s native token, UNI, has increased by 12.31%, hitting $11.29.
This announcement has contributed to the increase. The Uniswap Foundation detailed a significant step toward the implementation of autonomous fee collection and distribution in Uniswap V3 pools. Should the proposal receive approval, we will transfer ownership of the mainnet UniswapV3Factory to a recently deployed instance of V3FactoryOwner.
However, the vote will not activate the fees, a subsequent proposal will address this issue. In an effort to increase the number of people who participate in governance, the Uniswap Foundation suggested in February a fee compensation scheme for holders of UNI tokens. Despite the possibility of legal challenges against the DeFi protocol by the United States Securities and Exchange Commission (SEC), the initial responses demonstrated a substantial level of support.
Uniswap has traditionally distributed all of the fees that it has collected to liquidity providers (LPs), which are entities that supply assets to the platform. The new proposal is to distribute protocol fees among holders of staked and delegated UNI tokens, with the goal of providing an incentive for active participation within the ecosystem.
Uniswap Foundation Reveals $41.41M Holdings
According to CryptoFees, Uniswap has generated approximately $3.2 million in fees over the last twenty-four hours, with an average of $3.4 million over the previous week. In the decentralized finance industry, the protocol is responsible for managing approximately thirty percent of all deals.
In a separate but related development, the Uniswap Foundation said that as of the conclusion of the first quarter, it had a total of 730,000 UNI tokens and $41.41 million in fiat and stablecoins in its possession. During this period, the Foundation committed $4.34 million in new grants and distributed $2.79 million in previously committed grants.
We set aside UNI tokens for employee token rewards, and assign fiat currency (USD) cash and stables for grant-making and running activities, respectively. As the voting day draws near, the purpose of this financial disclosure is to facilitate transparency and instill trust among the various stakeholders.
Uniswap and the Securities and Exchange Commission (SEC) are currently involved in a legal dispute, and the DeFi protocol has responded to the agency’s notice. Uniswap has asked the SEC to drop the allegations made against the company.
The notification alleged that the company violated securities laws by operating as an unregistered securities exchange and broker. In April, the notice and the allegations became public. In accordance with the existing legal classifications, Uniswap Labs asserted that the Securities and Exchange Commission (SEC) does not possess the authority to regulate its decentralized protocol.