Uniswap Foundation Reveals Assets Ahead of Fee Mechanism Vote
The Uniswap Foundation announced that on-chain voting for a proposal to establish its new fee mechanism will occur by May 31. This announcement has boosted the value of the network’s native token, UNI, by 12.31% in the last 24 hours, reaching $11.29.
Uniswap Proposes Autonomous Fee Collection System
The Uniswap Foundation outlined a crucial step towards implementing autonomous fee collection and distribution in Uniswap V3 pools. If the proposal passes, ownership of the mainnet UniswapV3Factory will transfer to a newly deployed instance of V3FactoryOwner. However, the vote will not activate the fees, which will be addressed in a future proposal.
In February, the Uniswap Foundation proposed a fee reward mechanism for UNI token holders to boost governance participation. Initial responses showed strong support despite potential legal challenges from the US Securities and Exchange Commission (SEC) against the DeFi protocol. Traditionally, all fees generated by Uniswap went to liquidity providers (LPs) who supplied assets to the platform. The new proposal plans to distribute protocol fees among staked and delegated UNI token holders, thus incentivizing active participation within its ecosystem.
Uniswap Foundation Reveals $41.41M Holdings
According to CryptoFees, Uniswap earned approximately $3.2 million in fees in the past 24 hours, averaging $3.4 million over the last week. The protocol handles roughly 30% of total trades in the decentralized finance sector. In a parallel development, the Uniswap Foundation disclosed holding $41.41 million in fiat and stablecoins and 730,000 UNI tokens as of the end of the first quarter. During this period, the Foundation committed $4.34 million in new grants and disbursed $2.79 million in previously committed grants.
The fiat (USD) cash and stables are designated for grant-making and operating activities, while the UNI tokens are reserved for employee token awards. This financial disclosure aims to provide transparency and build confidence among stakeholders as the vote approaches.
In the ongoing legal battle between the SEC and Uniswap, the DeFi protocol has filed a response to the agency’s well notice. Uniswap has called on the SEC to abandon the claims against the firm. The notice, released in April, alleged that the company had violated securities laws by functioning as an unregistered securities exchange and broker. Uniswap Labs claimed that the SEC does not have jurisdiction to regulate its decentralized protocol under current legal categorizations.
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