Uniswap’s proprietary token UNI soared by over 70% last Friday, injecting enthusiasm amongst investors. This leap followed a governance lead’s hint at a potential transformation of the platform’s governance structure. Erin Koen, the Uniswap Foundation’s governance architect, suggested a revamp that would rejuvenate Uniswap’s governance mechanisms and incentivize users who stake and delegate their UNI tokens.
Proposal’s Impact on Governance
Koen’s announcement represents a significant shift for the leading decentralized exchange by volume. It contrasts with last year’s decision where a fee-rewarding mechanism for token holders was discarded by the Uniswap community. However, the exchange had already introduced a 0.15% fee on certain crypto swaps. The new proposal, if embraced by the community’s vote, will enable an automated and permission-free fee collection, with distributions to active UNI token holders.
UNI’s Market Performance and Outlook
UNI’s price experienced a remarkable surge within just three hours, escalating by 75% from $7 to $13 before stabilizing at $11.11. This peak was a record not seen since the prior year’s April. UNI’s impressive performance outshined Bitcoin, ETH, and other major altcoins, especially in a stagnant market. The market capitalization of UNI also witnessed a boost, exceeding $6.7 billion, alongside a 1265% spike in 24-hour trading volume, which hit $1.3 billion. The RSI value for UNI has peaked, indicating a potential oversold scenario.