Uniswap Opens Online Voting For “Fee Switch” Proposal Bringing $15M Annually

The fee transition proposal originally posted back in July that would collect small fees on certain Uniswap liquidity pools is being put up for a vote again. However, there are 2 measures of consensus and rejection taking place at the same time.
uniswap

According to the official admin website, Uniswap’s Fee Switch proposal will start voting on-chain within 14 days. Once voting is opened, UNI holders will have 7 days to vote.

The proposal plans to give Uniswap the opportunity to test the parameters of selected liquidity pools, including 0.05% DAI-ETH, 0.3% ETH-USDT and 1% USDC-ETH. Uniswap Treasury will charge a 10% fee for these 3 liquidity pools.

As per previous news, the PoolTogether co-founder initiated a proposal to discuss Uniswap fee conversion, including whether to enable Uniswap fee conversion and how fees should be used.

The proposal suggests that if you want to flip the fee switch, start with the two largest pools (ETH/USDC and USDC/USDT). If the transaction execution does not decrease when the “fee switch” is turned on, the test is successful. The proposal is currently being voted on through a temperature check and a consensus test.

uniswap

In the case of success, at current values, the entire protocol will bring in nearly $15 million annually, i.e., at current valuations, 314 times more profitable. In addition, the profit from the fee conversion sends funds to the protocol, even though no staking mechanism is implemented.

However, industry experts do not see the $15 million added annually to have a significant impact on the development of the industry-leading on-chain swap protocol. Even a $15 million direct team incentive won’t change TVL in the largest pools.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Foxy

Coincu News

Uniswap Opens Online Voting For “Fee Switch” Proposal Bringing $15M Annually

The fee transition proposal originally posted back in July that would collect small fees on certain Uniswap liquidity pools is being put up for a vote again. However, there are 2 measures of consensus and rejection taking place at the same time.
uniswap

According to the official admin website, Uniswap’s Fee Switch proposal will start voting on-chain within 14 days. Once voting is opened, UNI holders will have 7 days to vote.

The proposal plans to give Uniswap the opportunity to test the parameters of selected liquidity pools, including 0.05% DAI-ETH, 0.3% ETH-USDT and 1% USDC-ETH. Uniswap Treasury will charge a 10% fee for these 3 liquidity pools.

As per previous news, the PoolTogether co-founder initiated a proposal to discuss Uniswap fee conversion, including whether to enable Uniswap fee conversion and how fees should be used.

The proposal suggests that if you want to flip the fee switch, start with the two largest pools (ETH/USDC and USDC/USDT). If the transaction execution does not decrease when the “fee switch” is turned on, the test is successful. The proposal is currently being voted on through a temperature check and a consensus test.

uniswap

In the case of success, at current values, the entire protocol will bring in nearly $15 million annually, i.e., at current valuations, 314 times more profitable. In addition, the profit from the fee conversion sends funds to the protocol, even though no staking mechanism is implemented.

However, industry experts do not see the $15 million added annually to have a significant impact on the development of the industry-leading on-chain swap protocol. Even a $15 million direct team incentive won’t change TVL in the largest pools.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Foxy

Coincu News

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