The vote on the UniSwap (UNI) “fee switch” application, which was planned to be put to vote soon, has been postponed to a later date.
The proposal involved distributing a portion of the fees generated by the exchange to UNI token holders and was enthusiastically received by the community.
The latest version of the proposal, and its initial version that has the backing of the Uniswap Foundation, a nonprofit tasked with supporting the protocol, is designed to accomplish something else as well: boost otherwise lackluster participation in the DAO.
Under the current fee switch proposal, only those who “delegate” their tokens for use in protocol management will generate revenue through the fee switch. Delegation is when users lend voting rights tied to governance tokens, typically to subject matter experts. Token holders can also authorize themselves.
“Free-riding and apathy remain existential risks to the sustainability of the Uniswap Protocol,” reads the February 23 proposal, written by Uniswap Foundation executive leader Erin Koen, adding that “less than 10% of circulating UNI supports a particular proposal.” It's used for voting.”
*This is not investment advice.
