UNI Token Soars 60% Post Uniswap’s Governance Plan Reveal

In a shocker to all, the native token (UNI) of the decentralized exchange Uniswap has skyrocketed to an astonishing $12.20 on major exchanges, marking an impressive surge of over 60%. This surge is attributed to a groundbreaking governance proposal introduced by the Uniswap Foundation, aiming to revolutionize the protocol’s governance system.

Here’s all you need to know to remain updated on all things UNI!

Uniswap’s New Governance Proposal

On February 23, 2024, Koen submitted a groundbreaking proposal to overhaul Uniswap’s governance system. The focal point of this proposal is a crucial improvement to the protocol’s fee mechanism.

Playing the Long Game

The main goal of the proposal is to encourage a more active and responsible delegate community by linking rewards to governance participation. This step is vital for the protocol’s long-term sustainability and continuous growth.

Koen believes that Uniswap’s governance model will endure for decades, emphasizing its significance in the world of internet liquidity. The proposal underscores a commitment to enhancing the delegate experience and strengthening the overall governance structure.

“Specifically, I believe we should upgrade the protocol so that its fee mechanism rewards UNI token holders that have staked and delegated their tokens.”

Erin Koen

This strategic move is aimed at creating a more robust and decentralized governance structure with community approval playing a pivotal role.

Changing Gears

However, this proposal diverges significantly from previous attempts. Last year, Uniswap aimed to reward token holders with fees earned, but the community rejected a proposal in June to activate fees for many liquidity pools, opting to distribute a portion of the revenue among token holders.

In October, the exchange implemented a 0.15% fee on swaps involving ETH, USDC, and other tokens on the platform, setting a different tone for governance decisions.

UNI’s Market Dominance

In the wake of these positive developments, UNI experienced an outstanding surge, reaching $12, marking an impressive 60% increase over the past 24 hours. This price level represents the highest since April 2022, significantly outperforming the relatively stable price action of Bitcoin (BTC).

As the Uniswap community eagerly awaits the outcome of this proposal, the UNI token’s ascent signifies the excitement and optimism surrounding the potential transformation that lies ahead.