Uniswap approved a new funding of 165.5 million USD for the fund, laying the groundwork for the 'fee switch'.

The Uniswap community has voted to approve two governance proposals aimed at promoting the development of the newly launched Unichain Layer 2 and the Uniswap v4 protocol. These measures include a new funding program and other liquidity incentives. Notably, this decision also lays the groundwork for activating the long-awaited "fee switch" feature.

Both proposals, part of the "Uniswap Unleashed" initiative, aim to expand the Uniswap ecosystem and mark "the beginning of a new era" by opening up "new opportunities to build, grow, and create value," according to the Uniswap Foundation on platform X.

Built in collaboration between the Uniswap Foundation and the Web3 risk management protocol Gauntlet, liquidity incentives will attract new users and sustain ecosystem growth through developer-focused campaigns. The fund requests an investment of $95.4 million for the funding budget and an additional $25.1 million to finance operations over the next two years. In a separate proposal, the fund also suggested a budget of $45 million to support liquidity incentives.

Gauntlet has deployed and configured an Aera vault on the mainnet for the Uniswap Foundation, with over 7.5 million UNI tokens, worth approximately 52 million USD at the time of announcement. The price of UNI has increased by more than 10%, according to data from Bitcoin Magazine.

"We recognize the scale of this request and appreciate the support of the community. This is an investment in the success of the Uniswap protocol, Unichain, and the long-term value for the Uniswap community," according to the proposal.

Regarding the fee switch feature, the Uniswap Foundation will take the necessary legal steps to allocate revenue from protocol fees to governance members. "If approved, this step will pave the way for the introduction of ( or the reintroduction of ) a governance proposal allowing delegators to earn revenue from the protocol," the proposal states.

The fee switch feature will allocate a portion of the revenue from the protocol – currently held by liquidity providers – to UNI token holders. The delay in activating this feature has sparked debate within the community, especially after previous unsuccessful votes. Uniswap has generated over 1 billion USD in annual fees.

The Uniswap Foundation is an independent non-profit organization that oversees the development of the protocol, community, and ecosystem of Uniswap. One of the goals of this organization is to lay the groundwork for the fee switch feature.

Uniswap v4 launched in mid-January, transforming the decentralized exchange into a developer protocol through the implementation of "hooks" — contracts that allow developers to extend interactions in pools, swaps, fees, and other features. Uniswap Labs, the developer of the Uniswap ecosystem, has also launched the Layer 2 Unichain network based on Optimism technology.

Disclaimer:*** The article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions

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Thạch Sanh

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