Decentralized exchange Uniswap has taken a big step forward to support developers in the ecosystem as members of the community enthusiastically voted in favor of creating the Uniswap Foundation.
The foundation will support open-source development, reduce friction in the protocol’s governance system, and streamline Uniswap’s Grant Programme (UPG). It will be an independent foundation functioning within Uniswap’s ecosystem.
Uniswap is the largest decentralized exchange (DEX) by trading volume and the total value locked in the protocol has surpassed $4.17 billion.
The proposal to set up the Uniswap Foundation garnered 99% of the total votes polled or 86 million in favor, with only 770 votes against. The proposal needed 40 million votes for approval. The voting, which took place on Uniswap’s app, started on 17 August and concluded on 24 August.
To be able to participate in governance at the protocol, the foundation has requested 2.5 million UNI tokens from DAO. It has also requested an additional $74 million from the DAO’s $3.6 billion balance sheet. The sum will be divided into two funds, wherein $20 million will be earmarked for meeting operational expenses and grants over the next two years, while the remaining $54 million will be handed over to the Uniswap treasury after the foundation gets legal recognition.
Devin Walsh, a community member who proposed the creation of the Uniswap Foundation, said that the team has already started working on implementing some of the top priorities. Currently, they are focused on building a talent pool, scaling the grants program, and reinvigorating the governance process.
FAQs
Is Uniswap permissionless?
Yes, Uniswap is permissionless. The protocol is designed to be open and decentralized, allowing users to participate without any restrictions or special privileges. This means that anyone with a smartphone and an internet connection can trade on Uniswap, and there are no borders or restrictions on who can participate in the platform.
What is the Uniswap governance protocol?
The Uniswap governance protocol refers to the decentralized system through which the Uniswap community makes decisions and governs the protocol. It allows community members to participate in shaping the future of Uniswap by proposing and voting on changes to the protocol. The governance process involves discussions, proposal submissions, and voting on key decisions related to the protocol’s development, changes, or upgrades.
What is the new Uniswap fee?
As of October 2023, Uniswap Labs, the organization behind the decentralized crypto exchange Uniswap, introduced a 0.15% fee on trades involving Ethereum (ETH), USDC, and other tokens on the platform. This fee was implemented to sustain the development and improvement of the Uniswap protocol. The fee applies to crypto swaps conducted on Uniswap and is part of the broader strategy to support the ongoing growth and maintenance of the decentralized exchange.
What is the fee revenue of Uniswap?
As of the latest available data, Uniswap’s fee revenue has been substantial. Since enabling fees on certain trades, Uniswap Labs has accumulated $764,000 in revenue within two weeks. Additionally, the front-end transaction fees of Uniswap exceeded $3 million as of December 30th, 2023. In just 24 days, Uniswap’s front-end fees surpassed $1 million, contributing 17.4% to its total fees, with an estimated annual revenue of $15.2 million
