On February 23, the Uniswap Foundation, a non-profit associated with the DEX, unveiled a proposal to distribute protocol fees among UNI holders. The native token responded with a 54.5% increase, according to CoinGecko.
? New Governance Proposal Posted ?
UF Governance Lead @eek637 just posted a proposal to upgrade Uniswap Protocol’s governance system. Specifically, this upgrade would reward UNI holders who have staked and delegated their tokens.
— Uniswap Foundation (@UniswapFND) February 23, 2024
If the proposal gains support, rewards will be distributed to UNI holders who have staked or delegated their voting rights.
The proposed governance update aims to encourage “active, engaged, and thoughtful delegation” by linking the process to protocol fees.
“We believe UNI holders will be interested in selecting delegates whose votes and interaction with the protocol will lead to its growth and success,” the document states.
A voting snapshot will be taken on March 1, with the procedure commencing on March 8.
For technical implementation, the Uniswap Foundation has funded the development of two new smart contracts for the project’s existing ecosystem. They are designed to:
- upgrade protocol governance to enable fee extraction programmatically and without permission;
- distribute any fees proportionally among UNI holders who have staked and delegated their votes;
- allow governance to retain control over key parameters, including the list of pools from which fees are collected and their amounts.
Back in August 2023, K33 analysts described Uniswap’s UNI token as “almost useless.”