The Uniswap Foundation has revealed that it currently holds $41.41 million in fiat currency and stablecoins, as well as 730,000 UNI tokens, as of the end of the first quarter. During this period, the Foundation allocated $4.34 million in new grants and disbursed $2.79 million in previously committed grants. The fiat and stablecoins are designated for grant-making and operating activities, while the UNI tokens are set aside for employee token awards.
In addition, the Uniswap Foundation has announced that on-chain voting for a proposal to establish a new fee mechanism will take place by May 31. This proposal is a crucial step towards implementing autonomous fee collection and distribution in Uniswap v3 pools. If approved, control of the mainnet UniswapV3Factory will be transferred to a new V3FactoryOwner contract, marking a milestone in the decentralized governance of Uniswap. However, the vote will not activate the fees, as that will be addressed in a future proposal.
Despite a Wells notification from the SEC against the DeFi protocol, the Uniswap Foundation has stated that the fee switch will still be implemented. The SEC’s notification, released in April, accused the company of violating securities laws by operating as an unregistered securities exchange and broker. Uniswap Labs, the main developer of Uniswap, has responded by asserting that the SEC does not have jurisdiction to regulate its decentralized protocol.
This response comes at a time when the U.S. House of Representatives is preparing to vote on a bill that could potentially change how the SEC and CFTC regulate cryptocurrencies. The SEC has been investigating Uniswap Labs since 2021, and the decentralized exchange has previously delisted several tokens from its platform due to regulatory pressure.
Currently, Uniswap’s fee revenue is solely allocated to liquidity providers. However, the new proposal aims to distribute protocol fees among UNI tokenholders who stake or delegate their tokens. This will create an incentive structure that rewards active engagement and encourages meaningful contributions within the Uniswap ecosystem.
In February, the Uniswap Foundation proposed a fee reward system to incentivize UNI tokenholders to participate more actively in governance decisions. This is intended to enhance community participation and decision-making processes.
Magazine: Altseason on the horizon, SEC targets Uniswap, and BTC halving news.