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Holders of UNI, the native token of the Uniswap Protocol, are celebrating a meteoric rise in its value. Just minutes after a proposal outlining a new staking rewards mechanism, UNI skyrocketed over 75%, reaching a nearly two-year high of $12!
What sparked the surge?
The Uniswap Foundation (UF) proposed the creation of a fee mechanism that incentivizes UNI holders who stake and delegate their tokens. This essentially rewards active participation in the protocol’s governance, potentially leading to a more engaged and informed community.
Key details of the proposal Uniswap (UNI)
- If approved, the new system would incentivize active delegation of UNI tokens.
- A Snapshot vote is scheduled for March 1st, 2024, followed by an on-chain vote on March 8th.
- UNI’s surge contrasts a broader market consolidation, with leading cryptos like Bitcoin and Ethereum trading flat or slightly down.
Why is this significant?
This proposal has the potential to significantly impact Uniswap’s governance and its long-term trajectory. Increased participation and engagement from UNI holders could lead to more informed decision-making and a more robust protocol.
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