Uniswap is about to be transformed forever
Uniswap could be on the verge of approving the famous 'fee switch' 🔥
This week, I received the exciting news that Uniswap might activate the famous "fee switch" with great enthusiasm. If you're not familiar with this term, let me explain it to you…
Uniswap is known by many as the world's largest decentralised exchange, handling over $10 billion in average monthly volume. It's one of the pioneering projects in this area, and I personally hold it in high regard ❤️, having followed it since its first version.
In 2020, Uniswap launched its governance token $UNI through one of the largest airdrops in the history of cryptocurrencies, bringing joy to many users, including myself 😅
The project continued to evolve into its versions 3 and 4, as well as into Uniswap X. However, it was always criticised that UNI token holders did not receive any incentives; they only had the right to vote in the minimal governance of the protocol, which, by the way, is dominated by whales.
Some time ago, the possibility began to be discussed that a portion of the fees generated by the protocol could be distributed among UNI holders who staked their tokens. This idea sparked quite a bit of debate in its governance forum, as it could have regulatory implications in the US due to its similarity to a security. If I remember correctly, the proposal was rejected on several occasions.
The latest proposal, made by Erin Koen, the Governance Lead of Uniswap, seems to have much more weight and conviction than all the previous ones. The market reacted quickly, driving UNI's price from approximately $7 to $10 in just one hour.
☝️ It's important to clarify that the vote has not yet been conducted, but according to people more involved in governance, this could be the proposal that is finally accepted and implemented. It's worth mentioning that the implementation of this proposal could also take time, and the specific procedures have not yet been detailed.
Nevertheless, these are very promising news for $UNI token holders who have put their trust in the project…
👀 We will be watching how this narrative evolves, which promises to be a topic of conversation if implemented.
Many believe that the approval of the proposal could mark the beginning of the next "DeFi summer" ☀️, with several of the “OG” protocols adopting similar proposals for their tokens.
Another topic that is not much talked about is that original tokens like Uniswap or AAVE will reach their final vesting emission in a couple of years, meaning there will be no more token issuance, another interesting catalyst for the price of these "original" DeFi tokens.
Do you follow Uniswap? Does anyone here hold $UNI?
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Thanks for reading, I’ll catch you later in the week! 👋🏻