Summary
- Uniswap announced a governance proposal featuring protocol fee introduction and UNI token burn was approved.
- They said that under the proposal, some trading fees will be used in an on-chain burn mechanism to reduce UNI supply.
- They said the Uniswap Foundation treasury will burn 100 million UNI, and UNI is expected to transition from a governance token to a value-accrual asset.
The world's largest decentralized exchange (DEX), Uniswap (UNI), approved a proposal centered on introducing protocol fees and burning UNI tokens.
According to digital asset media CoinDesk on the 26th, the 'UNIfication' measure, jointly proposed by Uniswap Labs and the Uniswap Foundation, received about 125 million votes in favor during a five-day vote, with only 742 votes against.
With the approval of the governance proposal, Uniswap will use a portion of trading fees for an on-chain burn mechanism to reduce the supply of UNI tokens. As a result, UNI is expected to transition from a governance token to a value-accrual asset directly linked to platform usage.
Uniswap will also retroactively burn an additional 100 million UNI held in the foundation treasury. This is about $590 million at current prices.
As of 8:32 PM that day, Uniswap was trading at $5.89, up 2.04% from the previous day according to CoinMarketCap.
Uk Jin
wook9629@bloomingbit.ioH3LLO, World! I am Uk Jin.
