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<p>The post <a href="https://coinpedia.org/news/this-defi-token-surged-60-following-new-governance-proposal-to-reward-token-holders/">This DeFi Token Surged 60% Following New Governance Proposal To Reward Token Holders&nbsp;</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>The native token (UNI) of the decentralized exchange Uniswap experienced a remarkable surge, reaching highs of $12.20 on major exchanges. This surge, surpassing 60%, resulted from the Uniswap Foundation introducing a highly anticipated governance proposal to upgrade the protocol’s governance system.</p> 
<h2 class="wp-block-heading" id="h-uniswap-s-new-governance-proposal">Uniswap’s New Governance Proposal</h2> 
<p>On Friday, February 23, 2024, Erin Koen, Uniswap Foundation’s governance lead, submitted a groundbreaking proposal designed to overhaul Uniswap’s governance system. At the core of this proposal lies a strategic improvement to the protocol’s fee mechanism.</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
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   <p lang="en" dir="ltr"><img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f9f5.png" alt="🧵" class="wp-smiley" style="height: 1em; max-height: 1em;"> Biggest week in Uniswap Protocol Governance… ever?<br><br>I just proposed a large-scale upgrade to the system. Specifically, I believe we should upgrade the protocol so that its fee mechanism rewards UNI token holders that have staked and delegated their tokens. <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f984.png" alt="🦄" class="wp-smiley" style="height: 1em; max-height: 1em;"></p>— Erin Koen (@eek637) <a href="https://twitter.com/eek637/status/1761029351263318151?ref_src=twsrc%5Etfw">February 23, 2024</a>
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<p>The <a href="https://gov.uniswap.org/t/rfc-activate-uniswap-protocol-governance/22936">proposal’s primary objective</a> is to encourage a more active and responsible delegate community by aligning rewards with governance participation. This significant step is intended to fortify the protocol’s long-term sustainability and foster continuous growth.</p> 
<p>Koen see Uniswap governance model lasting for decades, making its role as a crucial part of internet liquidity. Moreover, these proposal shows a commitment to improving the delegate experience.</p> 
<p>Koen stated, “</p> 
<blockquote class="wp-block-quote"> 
 <p>Specifically, I believe we should upgrade the protocol so that its fee mechanism rewards UNI token holders that have staked and delegated their tokens.” </p> 
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<p>He further highlighted that approval from the community would make Uniswap’s governance more robust and decentralized.</p> 
<h2 class="wp-block-heading" id="h-shift-in-governance-approach">Shift in Governance Approach</h2> 
<p>However, this proposal is quite different from what was tried last year. Back then, they wanted to reward token holders with fees earned.</p> 
<p>Later in June, the Uniswap community rejected a proposal to activate fees for many liquidity pools, distributing a portion of the revenue among token holders. Meanwhile, in October, the exchange implemented a 0.15% fee on swaps involving ETH, USDC, and other tokens on the platform.</p> 
<h3 class="wp-block-heading" id="h-market-response">Market Response</h3> 
<p>Following the positive developments, <a href="https://coinpedia.org/price-prediction/uniswap-uni-price-prediction/">UNI experienced a surge</a>, reaching $12, marking an impressive 60% increase over the past 24 hours. This price level represents the highest since April 2022, significantly outperforming the relatively stable price action of bitcoin (BTC).</p>

This DeFi Token Surged 60% Following New Governance Proposal To Reward Token Holders

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