- Despite regulatory concerns, Uniswap continues to make changes to its governance structure.
- The price increase for UNI over the past 24 hours has also been quite notable.
Uniswap [UNI] Based on activity and other indicators, it has established itself as a leader in the decentralized exchange (DEX) sector. However, a recent regulatory investigation has caused some issues with the protocol, with a Wells Notice being sent to the Uniswap team.
Uniswap’s response
Uniswap responded swiftly to the Wells Notice. Marvin Amoli, Chief Legal Officer of Uniswap Labs, tweeted that the project is fully compliant with U.S. law. In fact, he accused the SEC of exceeding its authority to target assets and individuals.
Amoli emphasized that roughly 75% of Uniswap usage and 90% of the DEX’s trading volume occurs outside the U.S., and is therefore outside the SEC’s jurisdiction. The executive also said that Uniswap has already issued a position on the SEC’s allegations and is prepared to litigate if necessary.
Source: X
However, despite these issues the protocol faces, Uniswap governance continues to make major new developments.
The rule remains unmoved
According to a recent governance proposal, on May 31, UNI token holders will vote on a proposal to establish an autonomous fee collection and distribution system. The system will automatically collect fees generated by transactions on the Uniswap V3 pool and distribute them pro rata among UNI holders who stake and delegate their tokens.
Source: Uniswap
While this first vote does not immediately put the fees into effect, it lays an important foundation for future votes that will determine the details of fee implementation in Uniswap V3. To participate in this important vote, UNI holders must delegate their tokens before the May 31 deadline. This delegation process allows them to either vote directly or delegate their voting power to a third-party delegator. Platforms such as Agora and Tally facilitate this delegation process.
Looking beyond the initial vote, the proposal also outlines plans to streamline future fee-related votes. The plan aims to make the process of fee adjustments faster and more efficient, ultimately reducing the burden on Uniswap’s governance participants. Additionally, this future-oriented approach aims to maintain protocol neutrality, a core principle of decentralized exchanges.
More details on this proposed mechanism for streamlined fee adjustments will be published soon in a dedicated forum post, providing further clarification to UNI token holders and the broader Uniswap community.
If passed, this proposal could significantly strengthen Uniswap’s tokenomics by incentivizing UNI holdings, while also streamlining governance to smooth future fee adjustments.
Is Your Portfolio Green? Check out the UNI Profit Calculator
It is worth noting here that the price of UNI responded very favorably to these developments: at the time of writing, UNI was trading at $10.86, following a significant price increase of 19.78%.
Source: Santiment
