Uniswap has secured a $165 million investment plan following DAO approval, paving the way for significant growth and development for the Unichain network and Uniswap V4 protocol.
Uniswap Passes $165M Funding Plan After DAO Vote
The Uniswap community has approved two governance proposals aimed at expanding the Unichain network and Uniswap V4 protocol. The initiatives, dubbed ‘Uniswap Unleashed,’ introduced a new grants program and liquidity incentives while hinting at initial steps for a “fee switch,” a long-contested protocol vote that would pay out a portion of trading fees to holders of Uniswap’s UNI.
Uniswap is a decentralized cryptocurrency exchange (DEX) that allows users to trade cryptocurrencies in a trustless and permissionless manner.
It was founded in 2018 by Hayden Adams and is built on the Ethereum blockchain.
Uniswap uses an automated market maker (AMM) model, which eliminates the need for order books and traditional trading pairs.
Instead, liquidity providers deposit funds into the pool, earning fees from trades.
Uniswap has become one of the largest DEXs in terms of trading volume, with over $1 billion in daily transactions.
New Grants Program and Liquidity Incentives
The foundation requested $95.4 million for its grants budget and $25.1 million for operations over two years, plus $45 million for liquidity incentives to attract users and fuel ecosystem growth through developer campaigns. Both proposals passed with more than 80% of UNI token holders in favor, governance data shows.
Fee Switch and Potential Revenue Redistribution
The proposal was initially proposed in July 2021 to pilot the switch for a small set of Uniswap protocol pools. The switch will not increase fees for users but will retain a small portion of what is currently paid out to liquidity providers (LP), or users who lock up their tokens on Uniswap in exchange for fee rewards. If successful, this could mean lesser fee earnings for Uniswap’s LPs and more rewards for holders of Uniswap’s native token UNI.
Legal Entity Creation for the Uniswap Foundation
Part of the steps toward sharing revenue would be to make the Uniswap Foundation a legal entity, giving it clarity on legal status and the ability to contract with other protocols. The foundation requested this step as part of its governance proposals, which could pave the way for a governance proposal for delegators to earn protocol revenue in the future.
Next Steps
The passage of these proposals marks an important milestone for Uniswap’s growth and development. As the community moves forward, it will be exciting to see how these initiatives are implemented and their impact on the ecosystem.
- coindesk.com | Uniswap Passes $165M Funding Plan After DAO Vote
