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Uniswap Community Rejects Governance Proposal
The Uniswap community recently voted on a governance proposal aimed at changing the platform’s fee mechanism, including the distribution of revenue to UNI token holders. The proposal was rejected with 59.9% of mobilized UNI votes opposing it.
Rejected Proposal Details
- The proposal sought to give the decentralized autonomous organization (DAO) the power to modify Uniswap’s fee mechanism.
- It aimed to activate a long-awaited Uniswap “fee-switch” to distribute protocol revenue to UNI token holders.
Previous Proposal Results
Prior to this rejection, a separate proposal for protocol revenue collection had passed with overwhelming support.
UNI Token Holders’ Expectations
UNI token holders have been anticipating the activation of a fee-switch feature since the distribution of UNI tokens in 2020.
GFX Labs Proposal
GFX Labs, a DeFi-focused firm, co-authored the latest fee switch proposal, building on a similar one from the previous year.
- The previous proposal suggested distributing 10% or 20% of Uniswap revenue from pool fees to token holders.
- Despite some resistance, there is a clear desire among voters to implement some form of fee switch.
Concerns and Criticisms
There were concerns raised about potential tax and legal liabilities, as well as hesitance from influential entities within Uniswap governance to activate the fee switch.
- Discussions also highlighted worries about security and technical risks associated with granting the Uniswap DAO the ability to modify the fee mechanism’s code.
- Some argued that contract upgradability could pose risks to the system’s stability.
Uniswap Extension Update
Last month, Uniswap introduced a browser sidebar extension with a limit order feature and other tools to enhance cryptocurrency transactions.
Key Features of Uniswap Extension
- Enables direct interaction with digital assets from a browser sidebar.
- Streamlines asset swapping, transaction signing, and trading processes.
- Includes a Limit Orders feature for automated buying or selling at set prices.
UNI token is currently trading at $14.30, showing stability over the past day but significant gains over the past week and month.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
