- The community governance process, that governs the protocol of Uniswap is presently going to be voting on if it will operate a “fee switch” on select pools on its platform.
‘Fee Switch’: A new feature
In July 2022, Uniswap kept a proposal to start culminating fees on a small chunk of Uniswap liquidity pools. At the time of the proposal, Uniswap was foisting about a 0.3% fee for trading tokens on the platform. The offered fee switch, also known as the protocol charge, will transfer 0.25% of the 0.3% fee to LPs, and the left 0.05% will apparently go to UNI token holders.
Follow-up votes for the DAO mentioned “temperature check” and “consensus check” were directly kept and the offer passed, but many Uniswap community members spoke out for more time to research and know the proposal prior to the final vote.
At present, after six months of the introduction of the idea, the Uniswap community will eventually keep a binding vote on if they stepped further with the imposition of the fee switch.
The offer on which community members will be voting demonstrates an option for Uniswap to experiment with the parameters in the particular liquidity pools, this adds 0.5% of DAI-ETH, 0.3% of ETH-USDT, and 1% of USDC-ETH.
A fee of 10% will be applicable for the percentage of those particular pools, the lowest value allowed by the code, Uniswap basic smart contracts were unchangeable at the time they got deployed.
It is noteworthy that powering up the fee switch will not influence users utilizing protocols to swap directly, instead of this, it will keep a little bit of what is paid out at present to the liquidity providers. There is a high chance the humble minimum fees to those who supply liquidity will eventually work as a disincentive, particularly after the fee switch is implemented.
Voting will be live in the coming 14 days after the technical due diligence of the offer is evaluated by its authors. UNI token holders will then get 7 days to give their vote, after, if passed, by a 2-day time lock before inevitable implementation.
At the time of writing Uniswap is currently trading at $6.22 USD having a 24-hour trading volume of $169,665,805 USD. Also, it is up 3.87% in the last 24 hours. Holding a total market capitalization of $4,741,546,571 USD.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/12/03/uniswaps-fee-switch-receives-an-on-chain-vote/