The Uniswap community has accepted a financing plan amounting to $165.5 million to enhance the platform’s ecosystem. Following this decision, the price of the UNI token saw an increase of over 10%. Additionally, there has been a reported rise in trading volume and interest in UNI token derivatives.
Distribution of Funds and Purpose
According to two governance proposals approved by the Uniswap community, the allocated funds will be distributed across various areas. Specifically, $95.4 million is designated for grants, $45 million for liquidity provisioning, and $25.1 million for operational expenses. These funds will be managed by the Uniswap Foundation, which will take strategic steps to expand the ecosystem.
Part of the allocated resources will be used to provide liquidity incentives for the Uniswap v4 and Unichain platforms. The Web3 risk management platform Gauntlet will manage these incentives, aiming to increase new user participation in the network. Additionally, incentives and campaigns will be organized to encourage more active developer involvement.
Uniswap v4 and New Revenue Model
With the launch of the Uniswap v4 platform, special “hook” contracts will be introduced for developers. These contracts will allow developers greater customization and interaction capabilities on the platform. Unichain aims to offer faster and lower-cost transactions using Optimism’s technological infrastructure.
Among the governance proposals is a “fee switch” mechanism. When activated, a portion of the fees earned by liquidity providers will be distributed to UNI token holders. This will enable UNI holders to benefit directly from the revenue streams generated on the platform, with the Uniswap Foundation working on establishing the legal framework for this initiative.
Interest in UNI token trading is also on the rise within the cryptocurrency market, noticeable particularly in derivative products. The increase in open positions suggests a growing confidence of users in the Uniswap ecosystem.