Following the Uniswap Foundation's announcement of their plans to revamp their governance model, the value of UNI surged by 60%. The foundation aims to improve the protocol's fee system and promote sustainable growth by incentivizing token owners to stake and delegate their UNI tokens. The proposal has received predominantly positive feedback from the crypto community and includes the implementation of new smart contracts for efficient fee collection and sharing.

The primary objective of the governance proposal is to encourage greater participation from UNI token holders by offering meaningful rewards, thereby benefiting the network of delegates and reinforcing their commitment to the system. Uniswap emphasized the importance of a robust, decentralized, and active governance structure for the protocol's future success and prosperity.

The governance model's design is intended to ensure resilience, positioning Uniswap as a key player in internet liquidity. Positive outcomes from initiatives aimed at boosting governance participation, such as the Delegate Race and upcoming GovSwap events, have already been observed. However, addressing non-participation issues is crucial, underscoring the significance of this new governance venture. To address this, the proposal includes two additional smart contracts that complement the existing blockchain system to facilitate seamless fee collection and distribution to active UNI holders.

A Snapshot vote is scheduled for March 1, followed by an on-chain vote on March 8. Leading up to the vote, there was a notable increase in the price of UNI, surging from $7.36 to $12.53 – a 60% rise. According to DeFi analyst Ignas, "The proposal to introduce a rewarding system for staking and delegation has led to a 60% increase in UNI’s price. Despite this not being the first such proposal, this attempt spearheaded by Erin Koen, Gov Lead at Uniswap Foundation, has truly struck a chord with token holders."