Uniswap Price Surges 8% Following Governance Votes for Fee Switch
Uniswap's price increased by 8% to $7 following community approval of governance proposals for a “fee switch.” Current trading stands at $6.87, with a 170% increase in daily trading volumes to $297 million and a 17% rise in UNI futures open interest to $192 million.
Funding Plan Approved
The Uniswap community approved a $165 million funding plan for the Uniswap Foundation over two years. Key allocations include:
- $95.4 million for ecosystem grants
- $25.1 million for operational expenses
- $45 million for liquidity incentives
These funds will be distributed post-fee conversion, ensuring alignment with community goals and channeling revenue to UNI token holders.
Fee Switch Activation
The fee switch implementation awaits legal steps from the Uniswap Foundation to distribute protocol fees to governance members. The proposal indicates it could enable delegators to earn protocol revenue.
Annualized revenue generated by the Uniswap protocol is $1 billion. Activating the fee switch aims to enhance UNI token value and reshape revenue distribution.