One of DeFi\u2019s oldest discussions is back in the spotlight.<\/p>\n
Uniswap<\/a>, Ethereum\u2019s leading decentralized exchange, is seeing its native token surge after the Uniswap Foundation floated a proposal to distribute a portion of protocol fees to UNI stakers.<\/p>\n UNI spiked more than 60% on the news, boosting its market cap above $8 billion.<\/p>\n <\/p>\n <\/a><\/p>\n The proposal was welcomed by UNI holders, who have repeatedly called<\/a> for the so-called \u2018fee switch\u2019 to be enabled, thereby increasing the utility of the token beyond governance.<\/p>\n The Uniswap Foundation\u2019s governance lead, Erin Koen, proposed<\/a> the upgrade, saying that it would reward UNI token holders who had staked and delegated their tokens.<\/p>\n \u201cIf approved by the community, Uniswap Governance’s resilience and decentralization will increase,\u201d he said<\/a>.<\/p>\n A Snapshot vote is set for March 1, with an on-chain vote scheduled for March 8.<\/p>\n Onchain data shows that a wallet<\/a> providing substantial UNI liquidity withdrew its tokens and sent 1M UNI \u2013 worth around $7 million at the time \u2013 to Binance. The transactions were flagged<\/a> yesterday by blockchain observer Lookonchain.<\/p>\n Assuming that the UNI hasn\u2019t been sold yet, the prescient whale is up more than $4 million while avoiding impermanent loss.<\/p>\n With $4.9 billion in total value locked (TVL), Uniswap is Ethereum\u2019s<\/a> leading decentralized exchange, routinely processing over $1 billion of spot trades per day.<\/p>\n It is governed by UNI holders, but like most decentralized organizations, it has seen governance participation drop off amid the bear market.<\/p>\n Koen\u2019s proposal aims to improve Uniswap governance \u2013 which he calls minimized<\/a> \u2013 by making delegation a prerequisite to staking UNI and earning a portion of protocol revenue.<\/p>\n He added that \u201cexisting delegators must choose new delegates to stake tokens and earn rewards, likely creating mass re-delegation events short- to medium-term.\u201d Koen also said he thinks there will be a higher churn rate as votes shuffle between delegates more often.<\/p>\n In November 2023, Uniswap<\/a> DAO voted<\/a> to delegate a portion of UNI tokens held by the Uniswap Foundation to underrepresented delegates that maintain an 80% participation rate.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" If passed, the proposed upgrade to Ethereum\u2019s leading DEX will enable UNI stakers to collect a portion of protocol fees. One of DeFi\u2019s oldest discussions is back in the spotlight. Uniswap, Ethereum\u2019s leading decentralized exchange, is seeing its native token surge after the Uniswap Foundation floated a proposal to distribute a portion of protocol fees […]<\/p>\n","protected":false},"author":2,"featured_media":253123,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[274,273,272,244,266,271,268,270,269,267],"class_list":["post-253122","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-de-fi","tag-crypto-finance","tag-decentralized-finance","tag-liquidity","tag-metamask","tag-pancake","tag-slippage","tag-sushiswap","tag-tronlink","tag-trust-wallet","tag-uniswap"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/253122","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=253122"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/253122\/revisions"}],"predecessor-version":[{"id":253125,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/253122\/revisions\/253125"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/253123"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=253122"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=253122"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=253122"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Timely Trade<\/h2>\n
![\"UNI](\"https:\/\/thedefiant.io\/_next\/image?url=https%3A%2F%2Fcdn.sanity.io%2Fimages%2F6oftkxoa%2Fproduction%2F11a7eca9bf0cf08689c9bbc098980d95ac84c13d-703x318.png&w=828&q=100\")
Encouraging Governance Participation<\/h2>\n