Uniswap (UNI) jumps 20% after payment proposal

The Uniswap Foundation has announced that chain voting on the proposal to establish the new payment method will take place on May 31.

This announcement boosted the value of the network's native token, UNI, by more than 20%.

Uniswap's new payment mechanism and its implications

The Uniswap Foundation has outlined a critical step towards implementing autonomous payment collection and distribution in Uniswap V3 pools.

“If approved, this proposal will transfer ownership of the original UniswapV3 factory to a newly deployed V3FactoryOwner instance. This voice does not turn on payments; It will be implemented in the future,” the foundation said.

In February, the Uniswap Foundation proposed a payment reward mechanism for UNI token holders to increase governance participation. Initial reactions have shown strong support for the idea despite potential legal challenges from the US Securities and Exchange Commission (SEC) to the DeFi protocol.

Traditionally, all fees generated by Uniswap go to Liquidity Providers (LPs) who supply assets to the platform. The new proposal plans to distribute protocol fees between stakeholders and delegated UNI token holders. Thus encouraging active participation in the ecosystem.

According to CryptoFees, Uniswap received nearly $3.2 million in fees in the past 24 hours, compared to an average of $3.4 million in the past week. The protocol handles about 30% of all transactions in the decentralized financial sector.

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In a parallel development, the Uniswap Foundation disclosed that as of the end of the first quarter, it held $41.41 million in fiat and stablecoins and 730,000 UNI tokens. During this period, the foundation awarded $4.34 million in new grants and $2.79 million in existing grants.

“Fiat (USD) cash and stotis should be used for aid and operational activities and UNI for employee token rewards,” the foundation said.