Yesterday, the “temperature check” phase for a Governance proposal of the Uniswap crypto exchange officially concluded, in which community members were asked to vote and decide whether to introduce an economic incentive for UNI token holders.

The outcome was positive: the community unanimously expressed their approval to change the mechanism for collecting and distributing protocol fees.

Now we move on to the on-chain vote, scheduled for March 8th, with which holders of Uniswap’s crypto will be able to officially formalize this epochal transition.

All the details below.

Uniswap community at the polls: the “temperature check” vote passes for a proposal to modify the crypto exchange

Uniswap, leader in the decentralized crypto exchange sector, completed yesterday the ” temperature check ” phase for a governance proposal that had been simmering for a few weeks, leading to a unanimous vote from the community.

The “temperature check” is the preliminary part of an on-chain public vote, in which it conducts an instant survey to assess the initial sentiment of participants on the progress of a proposal.

In this case, 100% of the participants have expressed a positive vote regarding the proposal to overhaul the mechanism for collecting fees of the cryptographic protocol, strongly incentivizing UNI holders, the token of the Uniswap exchange.

In detail, the proposal was first announced on February 23, suggesting the possibility of introducing a mechanism to allocate part of the fees collected by Uniswap to all UNI holders active in the project’s governance who have delegated their voting power.

Now, after the intermediate phase of this decision-making process has also been completed, we will soon move on to the final on-chain vote, scheduled for March 8th, to decide whether to actually offer this type of economic incentive to the community.

If this vote also passes unanimously in a positive way, the UniswapV3Factory contract will need to be modified to introduce a new rule that allows for the active distribution of fees collected by the crypto exchange. 

According to Erin Koen, responsible for the governance of Uniswap Foundation, if the proposal is accepted, it will allow on one hand to reward all those who contribute to the governance of the protocol through active delegation and staking, and on the other hand to ensure greater decision-making influence to UN holders.

As described in fact inside the proposal on the official page of the Foundation: 

“We are excited to strengthen governance – encouraging not only delegation but active and thoughtful delegation – tying delegation to protocol fees. We believe that UNI token holders will be incentivized to choose delegates whose votes and commitment to the protocol will lead to the growth and success of the protocol.”

The positive vote from the community on this type of update comes after the world’s number 1 decentralized exchange introduced a new wallet extension, the ability to place limit orders, and other improvements to the project.

The effects of the governance proposal on the price of UNI

The news of the positive vote from the Uniswap community regarding the “temperature check” of the new proposal triggered a strong increase in the price of the cryptocurrency exchange coin, which recorded a +16.85% increase on the market yesterday, briefly touching $17 and subsequently closing the day at $15.4 per unit.

Investors during yesterday’s trading sessions showed their enthusiasm for an update that will offer an incentive similar to a stock dividend to all UNI holders, devolving part of the fees collected by the most profitable cryptographic protocol in the sector.

However, in reality, since February 23rd when the UNI governance proposal was announced, it had already grown significantly, reaching an impressive +54.89%.

Overall, in the last month the crypto is up 140%, marking its highest price in the last 26 months.

Since the beginning of the year, the price action of UNI, as well as the rest of the crypto market, has become very interesting leading to a strongly bullish directionality and bringing prices and volumes to levels not seen since the last bull market.

Thanks to the last leg up, the Uniswap exchange token strongly distances itself from the EMA 50 on the weekly chart and goes to attack the $17 resistance, which is very important for the past price trend of the crypto as it has acted as support for several weeks.

Now it is likely that the strongly positive trend of UNI will rest for a few days before deciding what the fate of the currency will be.

The RSI has just entered the overbought zone, signaling the possibility of a temporary weakening of demand momentum.

On paper it will be very important to see what Bitcoin will do in the coming days: if the digital gold will continue its crazy bullish run, it will most likely also influence other cryptocurrencies to rise, such as UNI, which could see new yearly highs around $20 this time.

Most likely in the medium term this coin will perform very well, as Uniswap is still the reference DEX for the entire decentralized market over 4 years later.

UNI will obviously reflect on the market the success of a financial service that improves day by day thanks to the support of developers and the Foundation.

Even more so, if the new update is implemented with the unanimous vote of the community, the crypto could achieve a revenue status never explored in the history of digital currencies.

Extremely bullish on the future of this ecosystem.