Uniswap price has climbed 8% to $7, driven by community approval of governance proposals to activate the long-anticipated fee switch.
By Bhushan Akolkar
Updated
3 mins read
Uniswap UNI $6.89 24h volatility: 0.3% Market cap: $4.14 B Vol. 24h: $165.06 M price has registered strong gains of 8% surging to $7 as the UNI community members voted in favor of two governance proposals to activate the much-awaited “fee switch”.
As of press time, Uniswap price is trading at $6.87 with daily trading volumes surging 170% to $297 million. Additionally, the CoinGlass data shows that the UNI futures open interest has surged by a massive 17% moving all the way to $192 million.
Crypto analyst World of Charts noted that Uniswap price is showing strong signs of a potential breakout as it challenges the upper range of a falling wedge pattern.
A successful breakout from this technical formation could mark the start of a significant recovery for the decentralized exchange token. As shown in the below chart, the UNI price can further rally to $20 and beyond.
On Wednesday, the Uniswap community gave a go-ahead to the $165 million two-year funding plan for the Uniswap Foundation. The largest allocation, which is $95.4 million, will support ecosystem grants to foster growth and innovation. Additionally, $25.1 million is earmarked for operational expenses, while $45 million will fund liquidity incentives.
These funds will be distributed after the fee conversion process, channeling protocol revenue directly to UNI token holders. Furthermore, it will also ensure alignment with the community’s goals and interests.
The Uniswap community has given a nod for two governance proposals aimed at accelerating the growth of the newly launched Unichain Layer 2 and Uniswap v4 protocols. According to the Uniswap Foundation, part of the “Uniswap Unleashed” plan, these proposals mark “the beginning of our community’s next era”.
A key outcome of the governance decision is laying the foundation for activating the fee switch.
The implementation of the fee switch would come once after the Uniswap Foundation decides to introduce the necessary legal steps required to distribute the protocol legal fees to the governance members. The proposal reads:
“If adopted, this step would pave the way for the potential introduction (or re-introduction) of a governance proposal for delegators to earn Protocol revenue.”
The fee switch would allocate a portion of Uniswap’s protocol revenues currently earned by liquidity providers directly to UNI token holders. This delayed activation has been a longstanding point of contention within the Uniswap community, particularly after previous governance votes failed to implement the feature.
The decentralized Uniswap protocol generates revenue of $1 billion in annualized fees. The activation of the fee switch will further enhance the value proposition of UNI token holders while reshaping the platform’s revenue distribution model.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.