Uniswap has unveiled plans to introduce a new fee distribution model pending approvals by May 31, 2024. These developments are significant given Uniswap's ongoing legal clash with the US Securities & Exchange Commission (SEC).

The proposed fee distribution system hinges on an automated mechanism to capture and allocate fees generated by Uniswap v3 pools. Uniswap views this as a crucial move toward fortifying decentralized governance, with UNI token holders poised to reap substantial benefits, fostering greater participation in the ecosystem. The deadline for approval stands at May 31, 2024.

Despite facing SEC allegations regarding activities related to unregistered securities, Uniswap Labs maintains the stance that the agency lacks jurisdiction over its decentralized protocol. However, the situation may evolve with the emergence of the FIT21 Act, potentially reshaping regulatory oversight in the crypto domain.

Revealing financial disclosures, the Uniswap Foundation indicates holdings valued at $41.41 million in stablecoin and fiat currencies. Additionally, it holds 730,000 UNI tokens valued at $8.2 million as of May 27, 2024. Each UNI token is priced at $11.19, reflecting a marginal decrease of 0.31% over the past 24 hours.

In the first quarter of 2024, the Uniswap Foundation generated approximately $2.79 million and earmarked $4.34 million for future grants supporting the DeFi ecosystem.

Despite undergoing consolidation, UNI sentiment remains bullish. Breaking the $10 milestone, UNI now faces key resistance levels at $11.50 and $11.75, with a projected target of $12 by year-end 2024. Key support levels lie at $11.05 and $10.05, breaching which could signal a bearish sentiment.

Over the past 7 and 30 days, UNI has surged by 44.32% and 44.84%, respectively. While experiencing a slight 0.46% dip in market capitalization, there's a notable 15.22% decrease in 24-hour trading volume.

These developments coincide with Uniswap's recent accumulation of $661,000 in fees via liquidator providers, amid a trading volume of nearly $5.5 billion, representing 48.9% of the total share. This surge occurred amidst speculation surrounding the SEC's approval of an Ether ETF, positioning Uniswap as a significant beneficiary in the decentralized exchange landscape.