Following the new management proposal, this DeFi Token increased by 60%.

The Uniswap Foundation has presented a comprehensive proposal to revamp the governance structure of Uniswap. This initiative encourages active and thoughtful participation by rewarding UNI Token holders for representation and accumulation.

This announcement led to a massive reaction from the cryptocurrency market, with the price of UNI tokens rising by an impressive 60%.

Uniswap's new management proposal

The rationale behind this idea is a strategic upgrade to the protocol's payment method. Uniswap aims to foster a more engaged and responsible society by aligning rewards with active governance engagement. This takes a bold step to ensure the long-term sustainability and growth of the protocol.

“This update will reward UNI holders who have delegated their tokens… Decentralized, resilient and engaged governance is essential to the long-term health and success of the protocol. We believe this reform will strengthen and empower Uniswap's governance, Uniswap said.

In fact, the foundation's vision for Uniswap is to shape a multi-decade adaptive and scalable governance model that will ensure it is the backbone of the Internet's liquidity. This includes a deep commitment to improving the representation experience. This has been demonstrated through the proxy contest, the Bridge Report and the upcoming GovSwap meetings.

These efforts are already beginning to pay dividends, with significant progress in representative activism and community-based governance initiatives. Still, the foundation acknowledges the challenges of free-riding and indifference, pointing to the need for a creative approach to this idea to stimulate governance engagement.

The technical backbone of this proposal is the deployment of two new smart contracts designed to seamlessly integrate with Uniswap's existing on-chain ecosystem. These contracts allow the collection and distribution of unlicensed protocol fees to deployed UNI tokens. This method ensures that governance adheres to key protocol parameters that promote meaningful engagement.

The proposal is scheduled for an instant vote on March 1, followed by a chain vote on March 8. A week before the referendum, the price of UNI rose sharply. In fact, it rose more than 60% from $7.36 to reach an intraday high of $12.53.

“UNI is up. [60%] On the proposal to introduce a fee to reward UNI holdings for those who trade and delegate their tokens. It is not the first time that the proposal has been made, but this time it is Erin Coyne, the Gov Lead at the Uniswap Foundation,” said Defy Researcher Ignas.

Read more: Uniswap (UNI) Price Forecast 2023/2025/2030

The idea of ​​the foundation is a testament to the collaborative efforts of the Uniswap community. It has contributions from leading entities such as Scopelift, Gauntlet and Avantgarde Finance. It also celebrates the innovative spirit of community members like Getty Hill, who first improved the protocol's payment collection mechanism.