Uniswap (UNI) sees a 40% weekly increase driven by a governance proposal redistributing fees to active stakers. Snapshot vote on March 1.
Uniswap (UNI) has experienced a notable 40% surge over the past week, attributed to the Uniswap Foundation's initiative to distribute fees among actively engaged UNI token holders in the network.
Aiming to enhance Uniswap's governance structure, the foundation has proposed a model advocating the allocation of protocol fees to UNI token holders who actively stake and delegate their voting rights.
A crucial snapshot vote on this proposal is scheduled for March 1, followed by on-chain voting commencing on March 8.
If the proposal gains approval, it could redefine Uniswap's strategy for compensating token holders, representing a departure from previous approaches.
Following this announcement, UNI observed an impressive 60% spike in a single day, reaching $12, its highest point since January 2022.
Uniswap's weekly chart reflects a two-year sideways trend, confined between the $12.5 and $3.3 marks. However, the recent surge challenges this long-standing resistance, indicating a potential shift in UNI's market dynamics.
Over the last four months, this recovery has led to a substantial 210% surge. The current UNI price stands at $11.16, a result of a 47.13% increase in the last seven days, according to CoinGecko data.
Anticipated Uniswap v4 Upgrade
Recently, the Uniswap Foundation unveiled plans for Uniswap v4, slated for release in Q3 2024. The upgrade aims to bolster the functionality and efficiency of the DeFi protocol by leveraging features from the upcoming Ethereum Dencun upgrade.
Incorporating Ethereum Improvement Proposals (EIPs) such as EIP-4788, EIP-1153, and EIP-4844 into protocol operations is set to elevate the user experience on the Ethereum blockchain. Uniswap v4 introduces a new feature – "hooks," enabling the integration of custom logic at critical protocol points.
Uniswap, functioning as a decentralized exchange (DEX), facilitates efficient ERC-20 token swaps without a centralized intermediary. Its innovative Automated Market Maker (AMM) framework enables users to swap tokens directly through liquidity provided by Liquidity Providers (LP), eliminating the need for an order book and mitigating security risks associated with centralized exchanges.
Users with an Ethereum wallet like Metamask can seamlessly perform token swaps, while Liquidity Providers earn a 0.3% trading fee for their contributions.
UNI, Uniswap’s governance token, was introduced as a retroactive airdrop in September 2020, rewarding users who interacted with the protocol. Token holders can participate in crucial governance decisions, such as treasury usage and future upgrades, through a voting system.
Optimism’s Generous Airdrop
Recently, Optimism, a Layer-2 network, distributed around $41 million in tokens through its fourth airdrop, demonstrating a strong commitment to acknowledging and appreciating creative contributors to the blockchain.
This initiative targeted web3 artists, distributing over 10 million OP tokens, valued at approximately $40.8 million. The 22,998 recipients, selected based on eligibility criteria involving NFT art creation on the Ethereum (ETH) mainnet or Optimism’s Superchain between Jan. 10, 2023, and Jan. 10 this year, are considered integral participants in the Optimism Collective’s ecosystem.
Recipients have until Feb. 13, 2025, to claim their tokens, underscoring the Layer 2 network's dedication to fostering a vibrant and creative community.
In an official statement, Optimism emphasized the significance of artists in building a great society, highlighting their pivotal role in infusing creativity into the blockchain and contributing significantly to the success and dynamism of the Optimism Collective.