Uniswap seeks to reward ‘proactive, diligent and considerate’ share and representation, with UNI increasing by 45%.

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Published by Uniswap Foundation (UF). Proposal The Uniswap protocol aims to reward “active, engaged and thoughtful” holders of the UNI token with the specific purpose of distributing it to the public.

🔈 New management proposal posted 🔈

UF Governance Lead @eek637 released a proposal to improve the governance system of the Uniswap protocol. Specifically, this amendment will reward UNI holders who have staked and delegated their tokens.

— Uniswap Foundation (@UniswapFND) February 23, 2024

Following news of the proposal, the UNI token has surged 45% in the past 24 hours, according to data from CoinGecko. The token now ranks 16th with a capitalization of $8.3 billion.

According to the proposals published by Erin Coyne, head of UFF governance, the foundation sees “free-riding and apathy” as an existential threat to Uniswap and hopes these changes “could strengthen governance”.

“Decentralized, resilient and engaged governance is critical to the long-term health and success of the protocol. We believe this reform will strengthen and empower the governance of Uniswap,” the foundation said in an X-Post statement.

While Uniswap is the largest decentralized exchange by volume, less than 10% of UNI tokens are used in volume. The decentralized exchange traded around $877 million worth of tokens last day.

If approved, two new smart contracts will be deployed: V3FactoryOwner.sol 38 and UniStaker.sol 39. The new V3FactoryOwner contract will enable the collection of protocol fees without permission. These are distributed through UniStaker to participating and representative UNI holdings. Management still controls pay levels and eligible pools.

After Code4rena's security audit, the snapshot vote is set for March 1, 2024, followed by a chain vote on March 8, 2024. Days pending audit results and community feedback are subject to change, the foundation said.

If the UF passes, he believes an influx of new delegates could follow. Past votes recommend that all incumbents “do their due diligence” by electing representatives who align with their priorities.

With UNI hovering around $11, there is much anticipation surrounding the votes scheduled for the first week of March. The pass will be a milestone for Uniswap – encouraging decentralization and community governance.

While awarding participation management may benefit Uniswap in the long run, delegates should consider the potential impact on liquidity. Gauntlet a Pretend By analyzing the payment gateway, find out that most of the money should stay with intermediate payments.

“The impact on volume, TVL and revenue depends greatly on the fee applied. In the most conservative case allowed by v3 fee contracts, Gauntlet predicts a flat 10% protocol fee, a 10.71% loss in liquidity, a 10.71% drop in MEV and a core transaction size of 0. It is predicted to decrease by 75% due to the flywheel effect,” the report says.

A full version of the protocol fee report is available. Read here.

Latest developments from Uniswap a Cooperation with ENS To provide the uni.eth domain names that can be claimed through the mobile app and the canonical deployment Its Uniswap v2 on Arbitrum, Polygon, Optimism, Base, Binance Smart Chain and Avalanche. The canonical extension allows users to exchange and create liquid pools with these six new chains directly from the Uniswap interface.

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