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Uniswap (UNI) skyrockets amid new governance proposal

By:
on Feb 23, 2024
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  • Uniswap (UNI) price rose to $12.20 after soaring 60% amid a new governance proposal.
  • The proposed upgrade seeks to implement a fee mechanism that rewards UNI token holders.
  • If passed, those who stake and delegate their UNI tokens will earn rewards distributed from Uniswap’s revenue.

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Uniswap (UNI) soared on Friday as the market reacted to a new governance proposal seeking to reward UNI holders. The decentralised exchange’s native token rose to highs of $12.20 on major exchanges, jumping by more than 60%.

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Today’s peak represents Uniswap’s highest price level since April 2022.

Uniswap to mull new governance proposal

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A new proposal that seeks to change Uniswap’s governance system is out. Uniswap Foundation’s governance lead Erin Koen submitted the proposal on Friday, February 23, 2024.

“Biggest week in Uniswap Protocol Governance… ever? I just proposed a large-scale upgrade to the system. Specifically, I believe we should upgrade the protocol so that its fee mechanism rewards UNI token holders that have staked and delegated their tokens,” Koen posted on X.

He says approval by the community will improve the DEX platform’s governance’s resilience and decentralisation.

“To survive & thrive in a credibly neutral way, Uniswap Governance needs to use its reputational, financial & technical capital for good. But the system isn’t set up for success,” he added.

Koen also noted that the active participation of token holders in the governance process is key to the project’s growth. As such, the proposal is for delegation to become a pre-requisite to staking and thus the way for UNI holders to earn a portion of network revenue.

The Uniswap Foundation’s post outlining the proposal will now go into a minimum seven-day “conversation” period starting February 23. Other key dates (could change) are March 1 and March 7, 2024.

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