100% of voters support Uniswap fee reward proposal

Summary:

•The Uniswap community is supporting a proposal to reallocate protocol fees to UNI token holders.

• Blockchain analysis company Token Terminal noted that UNI holders could earn more than $50 million.

• UNI has been trending upward since the proposal was made, and observers believe there is room for further gains.

Uniswap is an Ethereum-based decentralized exchange (DEX) on the verge of change in the decentralized finance (DeFi) space.

Designed to redistribute protocol fees to UNI token holders, this marks a major step forward in democratizing the network.

Uniswap community supports new proposal

Snapshot voting shows overwhelming community support for the fee reward proposal, which is expected to end on March 7.

The proposal includes upgrading the UniswapV3 Factory contract and giving the ability to seamlessly and programmatically collect protocol fee revenue. This strategic move aims to strengthen the governance framework and give UNI token holders greater influence in the decision-making process.

Erin Koen, head of governance at the Uniswap Foundation, outlined, “Overall, we are proposing to upgrade the protocol so that its fee mechanism rewards holders who have delegated and staked their UNI tokens.”

In essence, Uniswap’s reformed governance structure is designed to incentivize active participation from UNI token holders, thereby enhancing the sustainability of the protocol and promoting its expansion.

Uniswap protocol fee estimate｜Source: Token Terminal

Due to the unanimous support of voters, more than 10 million UNI tokens have now been pledged for the upgrade.

Blockchain analytics firm Token Terminal highlighted the huge benefits that UNI holders will receive from the proposal. Analysis shows that if the fee switch is activated, UNI holders have accumulated a cumulative income of up to US$58 million in the past year by facilitating US$437.7 billion in transaction volume and generating US$588.3 million in transaction fees.

Token Terminal explains, “Assuming a 10% protocol fee is implemented, Uniswap will become the ninth largest revenue-generating protocol in crypto, ranking between Optimism mainnet and Avalanche.”

However, with the fee switch dormant, Uniswap has yet to realize revenue generation from these fees, leaving huge potential for future development.

UNI Price Forecast: Further upside potential

The price of UNI has risen sharply in recent weeks, gaining significant momentum following the introduction of new governance proposals. Data shows that Uniswap’s market capitalization has surged 100% in the past month.

It peaked at over $13, up from less than $5 previously, and is currently trading at $12.43, reflecting a slight correction.

UNI Price Chart | Source: TradingView

Market analysts attribute this significant growth to widespread optimism surrounding fee award proposals. Notably, one analyst highlighted the key role the proposed development protocol could play in shaping the coin’s trajectory.

Analyst DaanCrypto said, "The weekly chart is quite clear. We hold the cost price around $9.8, and I will look for opportunities to break through $13 at some point in the future. This will likely depend on the progress surrounding the fee agreement proposal."

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