The price of Uniswap’s UNI has risen sharply in recent days. This is due to a governance vote on an update that could revolutionize the way network fees are distributed.
Uniswap’s UNI price jumps over the week
The cryptocurrency of the decentralized exchange platform Uniswap, UNI, has been on a roll in recent days. In the space of 48 hours, it has risen by 33%:
The UNI price had fallen at the beginning of the week, so over the last seven days, it has “only” risen by 19%. Ranked among the 40 most capitalized cryptocurrencies, UNI is currently worth $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 the way fees can be distributed on Uniswap. This update, which had already triggered a rise last November, 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 harmonized instead of varying depending on the pools. In addition, the UNI token is back in the game: the update makes it possible to activate protocol fees and partially redistribute 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 voted “FOR,” and voting will close on December 25.
Hayden Adams, the creator of Uniswap, welcomed this development, which he initiated:
The last 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’s next.
