Uniswap’s UNI Gains 20% as Token Reward Proposal Inches Closer to Approval

Ethereum (ETH) network’s leading decentralized exchange (DEX) Uniswap (UNI) has grown to a top-tier web3 platform with more than $5.83 billion in Total Value Locked (TVL). However, the Uniswap platform has been criticized for not prioritizing the community in the profit distribution model like other new DEXes. For instance, Avalanche (AVAX)-based JOE DEX has gained popularity due to its approach of community-first in the reward-sharing program.

Nonetheless, Uniswap had to move slowly due to the scrutiny by the United States Securities and Exchange Commission (SEC) for possible violation of securities law. With the US SEC charges dropped by the court, Uniswap can now proceed with its plan to include the community in its revenue-sharing program.

Inevitable Approval of Uniswap Fee Sharing Program

Earlier this year, the Uniswap Foundation, which is primarily focused on supporting the Uniswap protocol, announced a proposal to upgrade Uniswap’s governance system. Specifically, the upgrade intends to reward UNI holders who have staked and delegated their tokens.

Furthermore, a decentralized network is imperative to the long-term resilience of any Web3 protocol.

Remarkably, the temperature check geared towards understanding the community’s take on the proposal received an overwhelming 100 percent support with around 55 million UNI for yes votes. Notably, the snapshot for the temperature check ended on March 1, 2024, which paved the way for the on-chain vote.

The approval of the proposal will mark a major shift in the mass adoption of the UNI token and the Uniswap protocol. Moreover, the Uniswap protocol plays a crucial role in enabling the seamless adoption of Ethereum-based tokens including ERC-20s.

“We’re excited to invigorate governance – incentivizing not only delegation but thoughtful and active delegation – by tying delegation to protocol fees. Specifically, we believe UNI token holders will be incentivized to choose delegates whose votes and engagement with the protocol will lead to the Protocol’s growth and success,” the Uniswap Foundation noted in the proposal.

UNI Price Aims for ATH

Since UNI’s price broke out of a falling logarithmic trend earlier this year, the altcoin has rallied around 200 percent to trade at about $14.9 on Thursday during the early London session. The mid-cap altcoin with a fully diluted valuation of about $15 billion is attempting to mirror Ethereum and Bitcoin’s price action. Furthermore, the weekly Relative Strength Index (RSI) recently rallied above the 70 level, an early indicator of the parabolic rally, for the first time since the end of the 2021 bull run. Meanwhile, UNI bulls must first convert the resistance level around $15 to a support level in the coming weeks to ensure a bullish continuation.