UNI Surges 10% as Uniswap “Fee Switch” Plan Progresses by End of March 2025

Jakarta, Pintu News – Following the governance decision to approve $165.5 million in funding, Uniswap’s UNI token price has increased by more than 10% in the last 24 hours. Currently, the UNI price stands at $7.01 with a trading volume of around $292 million. This increase reflects the growing optimism among investors as the long-discussed “fee switch” initiative progresses.

Funding for Uniswap Ecosystem Growth

The Uniswap community recently approved two governance proposals that allocate $165.5 million in funds to support the growth of the Uniswap ecosystem. These funds will be used following the launch of Uniswap version 4 and the Layer 2 Unichain network. A total of $95.4 million will be allocated to the grant budget of the Uniswap Foundation, while $45 million will be set aside for liquidity incentives.

The remaining funds of $25.1 million will be used for operational costs over the next two years. The Uniswap Foundation, as an independent non-profit organization, is responsible for overseeing the growth of the protocol. The decision to allocate significant funds for ecosystem development aims to increase the scalability of the network and create new opportunities for growth.

The foundation’s long-term goal is to transform Uniswap from a decentralized exchange to a platform that can also serve developers and bring significant value to the Uniswap community.

Also Read: Bitcoin (BTC) Hasn’t Responded to Wall Street’s Demands, BlackRock Executive Warns

Liquidity Incentive Initiative Supports the Growth of Uniswap v4 and Unichain

Part of the funding will be used to establish liquidity incentives for the newly launched Uniswap v4 and Unichain platforms. Gauntlet, Web3’s risk management protocol, will manage these incentives to attract new users and sustain growth on both networks.

The proposal also includes a developer-focused campaign designed to sustain ecosystem expansion and encourage further participation from the wider community.

This campaign is expected to not only increase the number of users but also strengthen Uniswap’s position as a leader in decentralized finance innovation. By integrating developers into the ecosystem, Uniswap seeks to create more applications and services that can utilize the existing infrastructure.

“Fee Switch” Moves Closer to Reality, Potentially Changing Income Distribution

One of the most important aspects of the governance decision is the progress of the long-awaited “fee switch” initiative. This will redirect a portion of the protocol fees, currently earned by liquidity providers, to UNI token holders. This change has been eagerly awaited by the community, as previous proposals to enable a “fee switch” were unsuccessful.

The Uniswap Foundation has stated that it will proceed with the necessary legal steps to enable this switch. Once activated, Uniswap’s “fee switch” will allow UNI token holders to earn revenue from the protocol, which has been a major topic of discussion within the community.

With over $1 billion in fees generated annually by the Uniswap protocol, this shift will allow token holders to capture a portion of that revenue. The activation of the “fee switch” is a significant step in Uniswap’s ongoing efforts to align the interests of its governance members with the long-term success of the protocol.

Conclusion

The overall steps taken by Uniswap through these governance decisions mark a pivotal point in the evolution of the platform. With a strong focus on ecosystem development and developer integration, as well as changes in revenue distribution, Uniswap is on track to solidify its position as a leader in the decentralized economy.

Also Read: This is Arhur Hayes’ BTC Price Prediction Based on April 2025 Fed Rate!

That’s the latest information about crypto news today. Get more information about crypto academy from beginner to expert level only at Pintu Academy and enrich your knowledge about the world of crypto and blockchain.

Follow us on Google News to get the latest information about crypto and blockchain technology. Enjoy an easy and secure crypto trading experience by downloading Pintu Crypto via Google Play Store or App Store now.

Experience web trading with advanced trading tools such as pro charting, various order types, and portfolio tracker only at Pintu Pro. Click Register Pintu if you don’t have an account or click Login Pintu if you are already registered.

*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Coingape. UNI Price Jumps 10% as Uniswap’s Fee Switch Plan Moves Forward with $165.5 Million Funding. Accessed on March 21, 2025
• Featured Image: Unchained Crypto