Uniswap takes a step toward strengthening decentralized governance

Uniswap has announced plans to implement a new fee distribution mechanism if it receives the necessary approvals by May 31, 2024. It has further highlighted key figures from financial disclosures. What makes these developments imperative is that they come at a time when Uniswap is in the middle of a legal battle with the US Securities & Exchange Commission (SEC).

The proposed fee distribution mechanism relies on an automated system for capturing and distributing fees generated by Uniswap v3 pools. Uniswap has called this a significant step toward strengthening decentralized governance. Holders of UNI will largely benefit from this development, as it will incentivize participation in its ecosystem. The deadline for approval has been set to May 31, 2024.

The SEC has alleged that Uniswap is engaging in activities related to unregistered securities. Uniswap Labs has maintained the claim the agency lacks jurisdiction over its decentralized protocol. However, this only talks about the current regulations and does not take into account FIT21 – short for Financial Innovation & Technology for the 21st Century Act. The Act is believed to have a huge impact on how the SEC and CFTC control the crypto sphere.

Uniswap Foundation has revealed holdings worth $41.41 million in stablecoin and fiat currencies. The Foundation also holds 730,000 UNI tokens worth $8.2 million as of May 27, 2024. For better reference, a single UNI token is valued at $11.19, down by 0.31% in the last 24 hours while writing this article.

Uniswap Foundation has generated approximately $2.79 million in the first quarter of 2024. It has also committed funds worth $4.34 million in future grants to support the DeFi ecosystem.

UNI has a bullish sentiment prevailing across the market despite being in the consolidation phase. It recently broke the milestone of $10 and now has key resistance levels of $11.50 and $11.75. It is expected to reach $12 by the end of this year, 2024. Key support levels are at $11.05 and $10.05. Falling beneath these support levels could potentially open the gates for a bearish sentiment.

UNI is up by 44.32% in the last 7 days and 44.84% in the last 30 days. It could move upward before retracing to the lowest key support margin. There is a slight decline of 0.46% in the market cap and a notable drop of 15.22% in 24-hour trading volume.

This comes a couple of days after Uniswap banked $661,000 in fees via liquidator providers. The trading volume was nearly $5.5 billion, or 48.9% of the total share. It was amid the hype around the approval of Ether ETF by the Commission. The decentralized exchange platform is believed to be one of the largest beneficiaries of the speculation about Ether ETF.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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