Uniswap has secured a major boost as its governance voted to approve $165.5 million in funding, propelling UNI token’s price by over 10% in the last 24 hours. The token now sits at $7.01, with a trading volume around $292 million, reflecting a surge of investor optimism.
The funding, which is set to support the growth of Uniswap’s ecosystem, includes $95.4 million allocated for grants, $45 million for liquidity incentives, and $25.1 million for operational costs over the next two years. This capital infusion is aimed at expanding Uniswap’s scalability and enhancing its offerings through the launch of Uniswap v4 and the Unichain Layer 2 network.
Uniswap Foundation’s Strategic Focus on Ecosystem Expansion
The Uniswap community’s approval of the funding signals confidence in the protocol’s future. The Uniswap Foundation will direct funds to fuel innovation, including grants for ecosystem development and liquidity incentives for the Uniswap v4 and Unichain platforms. The liquidity incentives will be managed by Gauntlet, a Web3 risk management firm, to attract new users and sustain network growth.
Uniswap v4, launched in January 2025, introduced customizable “hooks” that allow developers to tailor pool, swap, and fee interactions. Meanwhile, Unichain, based on the Optimism tech stack, offers enhanced scalability, enabling higher transaction volumes with reduced fees.
UNI Derivatives and Fee Switch Take Center Stage
The approval of $165.5 million funding is not only a catalyst for ecosystem expansion but also brings the highly anticipated “fee switch” closer to reality. This feature would redirect a portion of protocol fees, typically earned by liquidity providers, to UNI token holders, allowing them to benefit from Uniswap’s substantial revenue generation. Over $1 billion in annualized fees have been accumulated by the protocol, and the fee switch would allow token holders to capture a portion of this.
Uniswap’s governance has now decided to take the necessary legal steps to implement the fee switch, a move that could significantly reshape the protocol’s revenue distribution. The potential activation of this feature aligns with Uniswap’s goal to incentivize token holders and create more long-term value for the ecosystem.
A Bright Future for Uniswap
With the fee switch nearing activation and a strong focus on growth, Uniswap is well-positioned to continue its dominance in the decentralized exchange (DEX) space. The latest funding and governance decisions signal that the protocol’s evolution is far from over, and UNI token holders are set to see increased rewards as the platform scales new heights.
Related topics:
Solana Price Eyes $178 Following $314 Million Bridged From Ethereum
Terra Luna Classic: Community Demands Changes to LUNC Staking Model
XRP and Ethereum Status in View as Ripple SEC Lawsuit Settlement Progresses
