Defi

Unswap discloses assets prior to the voting on the fee mechanism

The Uniswap Foundation declared that it had 730,000 UNI and $41.41 million in cash and stablecoins. tickers lower at $11.56% tokens at the conclusion of the initial quarter. The report states that during this time, the Foundation awarded $2.79 million in previously committed awards and committed $4.34 million in new grants. Grant-making and operational activities are the specified uses for the fiat cash and stables, whereas the UNI tickers lower at $11.56% Tokens are set aside for prizes to employees. The Uniswap Foundation has also declared that by May 31st, there will be an on-chain voting for a proposal to create a new pricing system. As per the foundation, the proposal delineates an essential phase for executing self-governing fee collection and allocation in Uniswap v3 pools. After the proposal is approved, a new, specially created V3FactoryOwner contract will take over management of the mainnet UniswapV3Factory, which will be a significant step toward Uniswap’s independent governance. The fees, on the other hand, won’t be activated by the vote; it will be covered in a later proposal.

The Uniswap Foundation declared that the free switch will go on even after the US Securities Exchange Commission (SEC) received a complaint from Wells over the DeFi protocol. The notice, which was published in April, said that by operating as an unregistered securities exchange and broker, the company had broken securities laws. Uniswap Labs asserted that, in light of existing legislative classifications, the SEC lacks jurisdiction to regulate its decentralized system. In light of the fact that the US House of Representatives was about to vote on the Financial Innovation and Technology for the 21st Century Act, a law that would alter the way the SEC and Commodity Futures Trading Commission (CFTC) oversee cryptocurrency, the company’s answer came at the right moment.

Since 2021, Uniswap Labs, the company behind Uniswap, has been under investigation by the SEC. A number of coins were previously removed from the decentralized exchange’s (DEX) platform due to increasing regulatory pressure. Liquidity providers (LPs), who receive compensation for providing assets to the platform and facilitating trading activity and market liquidity, have always received 100% of Uniswap’s fee income.

On the other hand, the proposed plan will divide protocol fees among UNI tickers declining to $11.52 token owners who stake or assign their tokens, establishing a system of incentives that incentivizes participation and promotes significant contributions to the Uniswap ecosystem. The Uniswap Foundation proposed a fee compensation system back in February with the goal of encouraging UNI tokenholders to participate more actively in governance choices, which would improve community involvement and decision-making procedures.

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