The Uniswap Foundation has shared that on-chain voting for a new fee system proposal will take place by May 31. This announcement led to a 12.31% increase in the value of UNI, the network's native token, bringing its price to $11.29.

New Fee System Proposal for Uniswap V3 Pools

The foundation has detailed plans to implement an autonomous fee collection and distribution system in Uniswap V3 pools. Should the proposal be approved, control of the mainnet UniswapV3Factory will be transferred to a new instance, V3FactoryOwner. This vote, however, will not trigger fee activation, which will be addressed in another future proposal.

Earlier in February, the Uniswap Foundation suggested a fee reward system for UNI token holders to encourage more participation in governance. The proposal was well-received initially, even though it might face legal challenges from the US Securities and Exchange Commission (SEC). Traditionally, fees generated by Uniswap have gone to liquidity providers (LPs) who provide assets to the platform. The new proposal aims to distribute these protocol fees to staked and delegated UNI token holders, thereby encouraging more active engagement in the ecosystem.

Uniswap Foundation Discloses $41.41 Million in Assets

According to CryptoFees, Uniswap earned around $3.2 million in fees over the past 24 hours, with a weekly average of $3.4 million. The platform processes about 30% of all trades in the decentralized finance sector. Additionally, the Uniswap Foundation revealed it holds $41.41 million in fiat and stablecoins, along with 730,000 UNI tokens, as of the end of the first quarter. During this period, the Foundation allocated $4.34 million in new grants and paid out $2.79 million in previously committed grants.

The cash and stablecoins are intended for grants and operational activities, while the UNI tokens are reserved for employee rewards. By disclosing this financial information, the Foundation aims to provide transparency and build trust among stakeholders as the vote draws near.

Ongoing Legal Issues with the SEC

Meanwhile, in its ongoing legal dispute with the SEC, Uniswap has responded to the agency’s notice of potential enforcement. The SEC had accused Uniswap of operating as an unregistered securities exchange and broker. Uniswap Labs contends that the SEC lacks the authority to regulate its decentralized protocol under the current legal framework.

In conclusion, the Uniswap Foundation's efforts to enhance transparency and encourage participation through its new fee system proposal and financial disclosures reflect its commitment to the growth and stability of its ecosystem. As the voting deadline approaches, the community’s engagement will be crucial in shaping the future of the protocol.