The price of Uniswap’s UNI has been on a sharp rise in recent days. The reason is a governance vote on an update that could revolutionize the way network fees are distributed.
Uniswap’s UNI price surges over the week
UNI, the cryptocurrency of the decentralized exchange platform Uniswap, has been on a roll in recent days. In the space of 48 hours, it has risen by 33%:
UNI’s price surge at the end of the week
The UNI price had fallen earlier in the week, so over the past 7 days, it has risen by “only” 19%. Ranked among the 40 cryptocurrencies with the highest market capitalization, UNI is currently valued at $4 billion.
A governance vote behind this rebound
The trigger for this rebound appears to have been the governance vote on the “Unification” proposal, which changes how fees can be distributed on Uniswap. This update, whose proposal had already triggered a rally last November, notably includes a new token burn policy.
The main idea is to bring together (unify) the various Uniswap protocols, which are currently fragmented. Fees will be standardized rather than varying by pool. Furthermore, the UNI token is being brought back into the spotlight: the update makes it possible to activate protocol fees and a partial redistribution of fees at a central level.
The decision had been debated within the community, but for now, the vote seems to be leaning heavily toward approval. At this stage, 95% of voters have indeed voted “FOR,” and the vote will close on December 25.
Hayden Adams, the creator of Uniswap, welcomed this development, which he initiated:
The past few years have been marked by obstacles: we have fought legal battles and navigated a hostile regulatory environment under Gary Gensler’s SEC. That climate has changed in the United States, and key milestones […] have prepared the Uniswap community for what lies ahead.
