Uniswap Officially Schedules Vote on Fee Sharing Proposal for UNI Holders on May 31

After a prolonged period of silence, Uniswap has confirmed it will proceed with the official vote on the proposal to share transaction fees with UNI token holders.

Uniswap Officially Schedules Vote on Fee Sharing Proposal for UNI Holders on May 31

In the early hours of May 25, a representative from the Uniswap Foundation, the organization managing the Uniswap decentralized exchange (DEX), posted an update on the progress of implementing the fee-sharing proposal for UNI token holders.

As previously reported by Coin68, Uniswap first announced the fee-sharing proposal for UNI token holders in February this year, causing the UNI token price to surge by 80% within hours. This long-awaited change aims to enhance the utility of UNI and allows the largest DEX in the crypto industry to share value with its community.

Top DEXs by 24-hour trading volume. Source: DefiLlama (25/05/2024)

Uniswap held a preliminary vote on the proposal in March, resulting in overwhelming support.

However, the process for the official vote was stalled when Uniswap Labs, the development unit of Uniswap, received a warning from the U.S. Securities and Exchange Commission (SEC) accusing Uniswap of trading unregistered securities—a claim which Uniswap later refuted.

Following the SEC's approval of Ethereum spot ETF proposals and recognition of ETH as a commodity, Uniswap resumed the process of implementing the fee-sharing proposal.

A representative from the Uniswap Foundation announced that the official voting for this proposal would begin on May 31, urging UNI token holders to delegate their tokens before this date to participate in the vote.

4-hour chart of UNI/USDT on Binance at 09:25 AM on 25/05/2024

In addition to the fee-sharing proposal, the vote will decide on other significant upgrades, such as establishing an automated fee collection and distribution mechanism. However, the representative noted that the May 31 vote would only determine whether to proceed with fee sharing, while the exact start date for distributing fees to UNI holders would be decided in a future vote.

At the time of writing, the price of the UNI token has increased by more than 15%, driven by the news that the Uniswap Foundation has confirmed the date for the official vote on the fee-sharing proposal.

Key Highlights:

• Official Vote Date: Uniswap has scheduled the official vote on the fee-sharing proposal for UNI holders on May 31.
• Background: The proposal was first announced in February, causing a significant surge in UNI token price.
• Preliminary Vote: Overwhelming support was received in a preliminary vote held in March.
• SEC Warning: The process was delayed due to an SEC warning, later refuted by Uniswap.
• ETF Approval Impact: SEC's approval of Ethereum ETFs and recognition of ETH as a commodity allowed Uniswap to resume the process.
• Participation Call: UNI holders must delegate their tokens before May 31 to participate in the vote.
• Future Decisions: The May 31 vote will determine whether to proceed with fee sharing, while the actual start date for fee distribution will be decided in a future vote.
• Market Reaction: UNI token price has increased by over 15% following the news.

This development represents a significant milestone for Uniswap, potentially enhancing the value proposition for UNI token holders and further solidifying Uniswap's position in the decentralized finance (DeFi) space.