Uniswap Foundation announced holding $41.41 million in stablecoins and 730,000 tokens by the end of the first quarter. According to the publication, the foundation committed $4.34 million in new grants during this period and spent $2.79 million on previously committed grants. The cash was allocated for grant-giving and operational activities, while the tokens were reserved for employee token rewards.
Uniswap Foundation’s Noteworthy Announcement
Uniswap Foundation also announced that on-chain voting for a proposal to establish a new fee mechanism would be conducted until May 31. According to the foundation, the proposal outlines a significant step towards implementing autonomous fee collection and distribution in Uniswap v3 pools.
Upon approval of the proposal, control of the UniswapV3Factory mainnet will be transferred to a newly designed V3FactoryOwner contract, marking a milestone in Uniswap’s decentralized governance. However, the vote will not enable fees, which will be addressed in a future proposal.
The Uniswap Foundation stated that the fee-free transition would proceed despite the United States Securities and Exchange Commission (SEC) Wells notice against the DeFi protocol. The notice, published in April, alleged that the company violated securities laws by operating as an unregistered securities exchange and broker.
Uniswap Labs argued that the SEC’s decentralized protocol is not subject to regulation under current legal classifications. The company’s response came as the US House of Representatives prepared to vote on a bill that could change how the SEC and the Commodity Futures Trading Commission (CFTC) regulate crypto.
What Are the Details on the Matter?
The SEC has been investigating Uniswap Labs, the main developer of Uniswap, since 2021. The decentralized exchange (DEX) had previously removed several assets from its platform, citing increased regulatory pressure. All of Uniswap’s fee revenue has always been allocated to liquidity providers who earn rewards by supplying assets to the platform, supporting trading activity, and market liquidity.
However, the new proposal will distribute protocol fees among token holders who stake or delegate their tokens, creating an incentive structure that rewards active participation and meaningful contributions within the Uniswap ecosystem. In February, the Uniswap Foundation had proposed a fee reward system to encourage UNI token holders to participate more actively in governance decisions, thereby enhancing community engagement and decision-making processes.
