Uniswap proposes to split fees for users - UNI price increases nearly 80%

Uniswap Foundation has announced a new governance proposal to change the fee mechanism on DEX, sharing revenue for UNI token holders.

Uniswap proposes to split fees for users - UNI price increased by nearly 80%. Photo: Decrypt

On the evening of February 23, 2024, the Uniswap Foundation suddenly announced its latest governance proposal related to the protocol's fee mechanism. Accordingly,Uniswapcan reward those who have delegated or staked their UNI. If nothing changes, a snapshot vote will be performed on March 1 and an on-chain vote will be performed on March 8.

This is not the first time there have been proposals regarding the distribution of fees collected to UNI holders. The most recent time, in May 2023,Gate Hill has come up with a proposal to charge liquidity pool fees and reward UNI holders. However, this proposal when put to a vote produced a controversial result as a section of UNI holders voted against it. 

However, unlike previous times, the person who made the proposal is @eek637 - Governance Lead of the Uniswap Foundation, meaning that the probability of this proposal being approved is very high.

Immediately after the news was released, the price of the UNI token increased nearly 80% to 12.6 USD - the highest price since January 2022.

1h chart of the UNI/USDT pair on Binance at 10:45 PM on February 23, 2024

Currently, Uniswap is still the largest decentralized exchange and generates a huge amount of fees. According to statistics, in the most recent 30 days, the amount of fees generated by

Uniswap reached 71.6 million USD, second only toLido Finance.

With the above proposal, it can be said tokenomics of UNIhas completely changed in "quality". This could also be the first shot, pioneering DeFi projects that can learn from this model. 

The prices of many DeFi tokens are also increasing at the time of writing following the news that Uniswap announced a proposal to share transaction fees for UNI token holders.