Uniswap Foundation Discloses Assets Amid Voting for Fee Mechanism Update
Uniswap's New Fee Mechanism and Its Implications
The Uniswap Foundation outlined a crucial step towards implementing autonomous fee collection and distribution in Uniswap V3 pools.
If passed, this proposal would transfer ownership of the mainnet UniswapV3Factory to a newly deployed instance of V3FactoryOwner. This vote will not turn on fees; that will be accomplished in a future proposal.
In February, the Uniswap Foundation proposed a fee reward mechanism for UNI token holders to boost governance participation. Initial responses showed strong support for the proposal despite potential legal challenges from the US Securities and Exchange Commission (SEC) against the DeFi protocol.
Traditionally, all fees generated by Uniswap went to liquidity providers (LPs) who supplied assets to the platform. The new proposal plans to distribute protocol fees among staked and delegated UNI token holders. Therefore incentivizing active participation within its ecosystem.
According to CryptoFees, Uniswap earned approximately $3.2 million in fees in the past 24 hours, averaging $3.4 million over the last week. The protocol handles roughly 30% of total trades in the decentralized finance sector.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.