Uniswap (UNI) Price Surges 50% with Fee-Sharing Governance Proposal

The price of UNI, the governance token of the Uniswap decentralized exchange, has surged more than 50% in the last 24 hours, reaching a two-year high of $12.73. UNI’s trading volume has also skyrocketed by 1,200%, reaching $1.33 billion. As a result, UNI now holds the 15th position on the CoinMarketCap ranking with a market capitalization of $6.7 billion. This surge in price and trading volume follows a proposal by the Uniswap Foundation to upgrade the protocol’s governance system. The proposal aims to reward UNI token holders who have staked and delegated their tokens and enrich the fee mechanism for those who have done the same.

The proposal, submitted by Uniswap Foundation’s governance lead, Erin Koen, suggests that UNI token holders will be incentivized to choose delegates whose votes and engagement with the protocol contribute to its growth and success. A snapshot vote for this proposal is scheduled for March 1, 2024, with an on-chain vote to be posted on March 8, 2024. The proposal comes after Uniswap introduced “Uni.eth” subdomains, allowing users to convert complex hexadecimal Ethereum addresses into human-readable names using the Ethereum Name Service infrastructure. Claiming a uni-eth name is free through the Uniswap mobile app.

Following the proposal, the price of UNI experienced a significant surge of over 73% from its opening price of $7.34, reaching an intraday high of $12.76 on February 23. This information is according to data from Markets Pro and TradingView. The rally also resulted in Uniswap becoming the most liquidated token in the past hour, based on data from Coinglass. At the time of publishing, Uniswap was being traded at $10.70.