The Uniswap Foundation has announced that on-chain voting for a proposal to establish its new fee mechanism will take place by May 31. This announcement has resulted in a 12.31% increase in the value of the network's native token, UNI, over the past 24 hours, reaching $11.29.

Uniswap Proposes Autonomous Fee Collection System

The Uniswap Foundation has outlined a crucial step towards implementing autonomous fee collection and distribution in Uniswap V3 pools. If the proposal passes, ownership of the mainnet UniswapV3Factory will transfer to a newly deployed instance of V3FactoryOwner. However, the vote will not activate the fees, which will be addressed in a future proposal.

In February, the Uniswap Foundation proposed a fee reward mechanism for UNI token holders to boost governance participation. Initial responses showed strong support despite potential legal challenges from the US Securities and Exchange Commission (SEC) against the DeFi protocol. The new proposal plans to distribute protocol fees among staked and delegated UNI token holders, thus incentivizing active participation within its ecosystem.

Uniswap Foundation Reveals Financial Holdings

According to CryptoFees, Uniswap earned approximately $3.2 million in fees in the past 24 hours, averaging $3.4 million over the last week. The protocol handles roughly 30% of total trades in the decentralized finance sector. In a parallel development, the Uniswap Foundation disclosed holding $41.41 million in fiat and stablecoins and 730,000 UNI tokens as of the end of the first quarter. During this period, the Foundation committed $4.34 million in new grants and disbursed $2.79 million in previously committed grants.

The fiat (USD) cash and stables are designated for grant-making and operating activities, while the UNI tokens are reserved for employee token awards. This financial disclosure aims to provide transparency and build confidence among stakeholders as the vote approaches.

Legal Battle with the SEC

In the ongoing legal battle between the SEC and Uniswap, the DeFi protocol has filed a response to the agency's well notice. Uniswap has called on the SEC to abandon the claims against the firm. The notice, released in April, alleged that the company had violated securities laws by functioning as an unregistered securities exchange and broker. Uniswap Labs claimed that the SEC does not have jurisdiction to regulate its decentralized protocol under current legal categorizations.

As the Uniswap community prepares for the upcoming vote on the fee mechanism proposal, the Foundation's transparency and the ongoing legal battle with the SEC will undoubtedly shape the future direction of the protocol and its governance structure.