PANews reported on March 20 that according to The Block, the Uniswap community has voted to pass two governance proposals aimed at promoting the development of the recently launched Unichain Layer 2 and Uniswap v4 protocols through new funding programs and other liquidity incentives. It is worth noting that this governance decision lays the foundation for activating the long-promised "fee switch". The Uniswap Foundation wrote on the social media platform X that the two proposals are part of the "Uniswap Unleashed" plan to expand the Uniswap ecosystem and mark "the beginning of the next era of our community" by unlocking "new opportunities to build, grow, create and capture value."
According to the proposal, these liquidity incentives were created in partnership with the Uniswap Foundation and web3 risk management protocol Gauntlet, and will attract new users and maintain ecosystem growth through developer-centric activities. The Foundation requested an investment of $95.4 million in its funding budget and an additional $25.1 million for operating funds over the next two years. In another incentive proposal, the Foundation requested a $45 million budget to support liquidity incentives. Gauntlet has deployed and configured an Aera vault for the Uniswap Foundation on the mainnet, which will be injected with more than 7.5 million UNI tokens, worth approximately $52 million at current prices. The proposal reads: "We recognize and appreciate the scale of this request. It reflects an investment in the success of the Uniswap protocol and Unichain, and an investment in the value of the Uniswap community."
As for the fee switch, it will be implemented after the Uniswap Foundation decides to take the necessary legal steps to distribute protocol fee revenue to governance members. “If passed, this step would pave the way for the potential introduction (or reintroduction) of a governance proposal to enable delegators to earn protocol revenue,” the proposal states.
