2024-06-01
Uniswap Foundation has postponed the
vote on a proposal that would introduce staking and delegation rewards for UNI
token holders that earlier scheduled for May 31, 2024.
Uniswap Foundation does not specify the
exact date for the vote yet.
This delay was due to an issue raised
by a stakeholder, which required additional scrutiny. The proposal is
significant as it would activate the decentralized exchange’s “fee switch,”
providing incentives to those who stake and delegate their UNI tokens.
UNI token holders who
have staked and delegated their tokens are eligible for rewards. Staking
involves locking up your tokens in a smart contract, while delegating means
assigning your voting rights to another address.
The collected fees will
be distributed to UNI token holders who have staked and delegated their votes.
This means that the more tokens you have staked and delegated, the larger your
share of the rewards.
Uniswap makes between $1
million and $5 million in daily trading fee. If approved, this proposal could
pay out between $62 million and $156 million to UNI holders in annual
dividends.
The postponement led to a notable
decrease in the value of Uniswap’s UNI token, which fell more than 7% to $10.03.
The decision has been met with
criticism from some community members, including Dan Robinson from Paradigm,
who expressed disappointment over the influence of a large venture-capital firm
on the governance process.
The Uniswap community has been
discussing the activation of a fee switch for years, with several previous
proposals not moving forward, mostly due to concerns over US securities laws
violations. The current proposal, designed by the Uniswap Foundation, aimed to
address these concerns and had received support during an earlier advisory vote.
