Uniswap Foundation Unveils Major Upgrade Plan, UNI Price Skyrockets 52%
February 23 2024 - 11:18AM
NEWSBTC
Uniswap (UNI), one of the industry’s largest decentralized
cryptocurrency exchanges (DEXs), has set the stage for a major
shift in its ecosystem with a proposed upgrade that could have
significant implications for UNI token holders. The upgrade
aims to bolster governance participation, enhance resilience, and
reward token holders for active engagement within the Uniswap
ecosystem. Uniswap Takes Big Leap In Governance Uniswap Foundation
(UF) Lead Developer Erin Koen, while expressing his enthusiasm, has
suggested that it has been the “biggest week in Uniswap Protocol
Governance” and revealed a major upgrade proposal for the system.
At the heart of the proposed upgrade lies a fee mechanism designed
to reward UNI token holders who stake and delegate their tokens. As
announced, by actively participating in the governance process,
token holders can earn additional rewards in the form of protocol
fees. In addition to the enhanced rewards, the proposed
upgrade seeks to fortify Uniswap Governance, making it “more
resilient and decentralized.” According to Koen, by
increasing the number of actively involved token holders, the
governance structure becomes more robust, ensuring that decisions
align with the collective interests of the UNI community. The
proposed upgrade maintains governance control over core parameters
such as fee-charged pools and fee magnitude. Token holders will
collectively decide on these critical aspects, allowing for
flexibility and adaptability in response to market dynamics.
Related Reading: Avalanche C-Chain Experiences Block Production
Halt, AVAX Price Responds Beyond the immediate benefits, the
proposed upgrade holds the potential for long-term value
appreciation of the UNI token. By incentivizing participation and
aligning token holders’ interests with the ecosystem’s success,
Uniswap aims to foster organic growth and adoption. Assuming
a successful on-chain vote, the community will have the option to
activate fees. Gauntlet, a trusted entity, is reportedly preparing
a proposed roll-out process that will be shared on the forum.
Only after completing this separate governance process will fees be
collected and distributed according to the adopted contracts. Koen
further noted: We’re excited to invigorate governance –
incentivizing not only delegation but thoughtful and active
delegation – by tying delegation to protocol fees. Specifically, we
believe UNI token holders will be incentivized to choose delegates
whose votes and engagement with the protocol will lead to the
Protocol’s growth and success. If this proposal succeeds we believe
we will see an influx of new delegations. UNI Records 23-Month High
As these developments unfold, considerable excitement has emerged
around the Uniswap protocol. Notably, a cryptocurrency investor
named “Virtual Bacon” expressed enthusiasm, stating, “Uniswap
finally proposes to share revenue with UNI token stakers. Chart
exploding on this ‘proposal’ which hasn’t passed yet.” Within
24 hours, the UNI token witnessed a surge of over 52%, signaling
the market’s anticipation of the potential benefits this upgrade
could offer token holders. Currently, the UNI token is trading at
$11.29. However, with the unveiling of the upgrade proposal, the
token quickly surged to the $12.50 level, reaching its highest
point in 23 months. The gains over longer time frames have
also experienced a dramatic surge. Over the past fourteen days, the
UNI token has seen an impressive increase of 73%. Similarly, the
token’s value has soared by 94% in the last thirty days.
Related Reading: Cardano (ADA) Faces Critical Sell Signal: Crypto
Analyst Raises Alarm Overall, should the proposed upgrade be
approved and implemented, Uniswap will reinforce its position as a
leading DEX and establish a framework that empowers token
holders and fosters the continued growth and success of the Uniswap
protocol. Featured image from Shutterstock, chart from
TradingView.com
Uniswap (COIN:UNIUSD)
Historical Stock Chart
From Mar 2024 to Apr 2024
Uniswap (COIN:UNIUSD)
Historical Stock Chart
From Apr 2023 to Apr 2024