Uniswap to Vote on New Fee System After Revealing Finances

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As an analyst with a background in cryptocurrency and blockchain technology, I find the Uniswap Foundation’s financial disclosure for Q1 2024 both intriguing and significant. The Foundation’s holdings of over $41 million in fiat, cryptocurrencies, stablecoins, and UNI tokens underscore its growing influence and impact within the decentralized finance (DeFi) space.

In the final weeks of Q1 2024, Uniswap Foundation revealed its financial holdings in both traditional money and digital currencies through a disclosure statement. The data presented reveals that the foundation possesses approximately $41.41 million in total value, comprised of fiat currency, cryptocurrencies, and stablecoins. Furthermore, it holds around 730,000 UNI tokens with each token valued at about $11.43.

A timely development arises as the exchange prepares for a pivotal vote on establishing a new fee collection and distribution mechanism.

In the first quarter, the Foundation distributed a total of $2.79 million from approved grants and initiated new grant-making commitments worth $4.34 million. Cash and stablecoins are utilized for issuing grants or covering operational expenses, while UNI tokens are earmarked for employee token rewards.

Previously this month, we made public our 2023 financial report in accordance with our pledge for transparency.

Now, we are thrilled to unveil the Uniswap Foundation’s Q1 2024 financial data.

For further details, please refer to Mirror: [Link]

— Uniswap Foundation (@UniswapFND) May 25, 2024

As a researcher, I’m here to provide you with accurate and clear information. Regarding the Uniswap Foundation, they have announced the commencement of a voting procedure aimed at approving the automatic collection and redistribution of fees for Uniswap v3 pools by May 31st of this year. This approval signifies a major step towards decentralizing governance on Uniswap as it will transfer control over the mainnet UniswapV3Factory to a new V3FactoryOwner contract.

Despite the US Securities Exchange Commission’s (SEC) allegation of unregistered broker-dealership activities at Uniswap, this amendment would still proceed under such circumstances. Previously, SEC regulation of Uniswap was not possible due to its automated protocol being considered beyond the jurisdiction of the SEC according to Uniswap Labs.

The cast ballot aligns with a legislative proposal in Congress named the Financial Innovation and Technology for the 21st Century Act. This bill could shape how the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) regulate crypto-related businesses.

Up until now, liquidity providers have been the ones receiving all the fees generated through transactions on Uniswap. But under the proposed change, fees will instead be distributed among UNI token holders who choose to participate by staking or delegating their tokens. This shift aims to promote active engagement and foster a stronger sense of community involvement.

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2024-05-26 17:40