Uniswap Foundation Proposes Governance Overhaul, UNI Soars 60% on News

The Uniswap Foundation, a non-profit organization backing the decentralized exchange Uniswap, has proposed changes focused on restructuring fee mechanisms to reward UNI token holders, injecting fresh energy into Uniswap's governance model.

Uniswap Foundation's proposal aims to improve protocol governance to facilitate protocol fee collection. These fees would be distributed proportionally to UNI token holders who have staked and delegated their votes. 

Additionally, the governance system would retain control over core parameters related to fees. The primary goal is to fortify and revitalize Uniswap's governance structure.

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Shift in Approach

This proposal marks a departure from Uniswap's previous initiatives, such as last year's unsuccessful attempt to reward token holders with accrued fees. This proposal, led by Erin Koen, the Uniswap Foundation's governance lead, aligns the fee mechanism with the interests of staked and delegated token holders.

The success of the proposed overhaul hinges on a community vote, with analysts expressing optimism. According to Blockworks research analyst Matt Fiebach, despite past failures, the current proposal appears to be on the right track. 

In addition to foundation support, this fee switch proposal benefits from ongoing research and development. In response to the announcement, Uniswap's native token (UNI) experienced a rapid surge of over 60%, leaping from $7.24 to $12.6 within an hour, as reported by CoinMarketCap.