Uniswap’s governance token, UNI, saw a sharp rise of up to 60% on Friday following a proposal to revamp the protocol’s governance system, spearheaded by Uniswap Foundation’s governance lead, Erin Koen.
The proposal aims to enhance Uniswap’s governance structure and introduce rewards for UNI token holders who staked and delegated their tokens.
“I propose upgrading the protocol to ensure that UNI token holders who have staked and delegated their tokens receive rewards through its fee mechanism,” expressed Erin Koen in a post on X.
This proposal marks a significant shift for Uniswap, the leading decentralized exchange by trading volume, diverging from last year’s attempt to distribute accrued fees to token holders. In June, the Uniswap community rejected a proposal to activate fees for several liquidity pools and distribute a portion of the revenue to token holders. However, in October, the exchange initiated a 0.15% fee on crypto swaps involving ETH, USDC, and other tokens on the platform’s interface.
If approved in a community vote, Friday’s proposed overhaul would allow for the automatic and fair distribution of protocol fees to UNI token holders who have staked and delegated their votes.
UNI’s price surged to $12, marking a nearly 60% increase over the past 24 hours and reaching its highest point since April 2022. This substantial rise contrasted with the relatively stable prices of bitcoin (BTC) .
