Uniswap’s elusive fee switch may finally be getting flipped on as the Uniswap Foundation reveals a ‘UNIfication’ plan.
Uniswap, the leading decentralized exchange (DEX) by volume, has unveiled UNIfication — a joint proposal from Uniswap Labs and the Uniswap Foundation to activate protocol fee distribution to tokenholders, a move that has been brewing since 2022.
The UNI token is up more than 10% today following the proposal, trading above $7 for the first time since October 10. UNI is currently changing hands at $7.6 per token, after plunging as low as $4.95 less than a week ago.
Uniswap Foundation co-founders Devin Walsh and Ken Ng published the UNIfication blog post today, where they wrote, “Today, alongside Uniswap founder Hayden Adams, we’re excited to make a joint governance proposal (link) that turns on protocol fees and aligns incentives across the Uniswap ecosystem. We believe this proposal positions the Uniswap Protocol to win as the default decentralized exchange for tokenized value.”
“Together with Uniswap Labs, we’re proposing a long-term model for the Uniswap ecosystem: one where protocol usage drives UNI burn and one aligned team focuses on protocol development and growth,” the post continued.
It’s still unclear exactly what percentage of fees will be allocated to the UNI burn and incentives, but Uniswap remains one of the top fee-generating protocols in decentralized finance (DeFi), with almost $3 billion in annualized fees, according to DeFiLlama.
The fee switch has been a long time coming, with multiple previous proposals, rejections, and delays leaving UNI holders frustrated.
Source: https://thedefiant.io/news/defi/uni-soars-as-uniswap-labs-and-foundation-propose-fee-switch-activation
