New Governance Proposal Boosts DeFi Token, Leading to a 60% Surge in Value for Token Holders

UNI Token Soars 60% as Uniswap Introduces Governance Proposal to Reward Holders

Uniswap’s native token, UNI, has seen a significant surge, reaching a high of $12.20 on major exchanges. This surge, which exceeded 60%, was triggered by the introduction of a highly anticipated governance proposal by the Uniswap Foundation.

The proposal, submitted by Erin Koen, the foundation’s governance lead, aims to revamp Uniswap’s governance system. At the core of the proposal is an improvement to the protocol’s fee mechanism. Koen believes that the protocol should reward UNI token holders who have staked and delegated their tokens, in order to encourage a more active and responsible delegate community.

By aligning rewards with governance participation, the proposal seeks to strengthen Uniswap’s long-term sustainability and foster continuous growth. Koen envisions a governance model that can adapt and thrive over decades, solidifying Uniswap’s position as a leading provider of internet liquidity. The proposal also emphasizes the commitment to enhancing the delegate experience.

Koen stated, “I believe we should upgrade the protocol so that its fee mechanism rewards UNI token holders that have staked and delegated their tokens.” Approval from the community would make Uniswap’s governance more robust and decentralized.

It is important to note that this proposal differs from previous attempts to reward token holders with fees earned. Last year, a proposal to activate fees for liquidity pools was rejected by the Uniswap community. However, in October, the exchange implemented a 0.15% fee on certain swaps.

The market response to the governance proposal has been overwhelmingly positive. UNI has experienced a surge, reaching $12, marking a remarkable 60% increase in just 24 hours. This price level is the highest since April 2022 and surpasses the relatively stable price action of bitcoin.