The UNI value soared by 60% in the wake of the Uniswap Foundation’s announcement of their plans to overhaul their governance model. Through offering incentives to token owners who stake and delegate their UNI tokens, the foundation aims to enhance the protocol’s fee system and stimulate enduring growth. The proposition has been met with largely positive feedback from the crypto community, and includes the implementation of new smart contracts for efficient fee collection and sharing.
The core objective of the governance proposal is to foster a more active involvement from UNI token holders by providing meaningful rewards. This in turn benefits the network of delegates, promoting their responsibility towards the system. Uniswap emphasized that a strong, decentralized, and active governance structure is paramount to the future success and prosperity of the protocol.
The design of the governance model is intended to ensure resiliency, establishing Uniswap firmly within the arena of internet liquidity. Already, positive results from initiatives boosting governance participation are evident, including the Delegate Race and the impending GovSwap events. However, non-participation issues continue and thus make this new governance venture all the more critical. To tackle this, the proposal includes two additional smart contracts which synergize with the existing blockchain system to ensure easy fee collection and distribution to active UNI holders.
There is a Snapshot vote slated for March 1, which will be followed by an on-chain vote on March 8. Leading up to the vote, there was a noticeable surge in the price of UNI, jumping from $7.36 to $12.53 – a 60% increase. According to DeFi analyst Ignas, “The proposal to introduce a rewarding system for staking and delegation has led to a 60% increase in UNI’s price. Despite this not being the first such proposal, this attempt spearheaded by Erin Koen, Gov Lead at Uniswap Foundation, has truly struck a chord with token holders.”