TL;DR
- Incentives for UNI Delegators: Proposal to strengthen Uniswap governance by rewarding UNI token delegators.
- New Smart Contracts: Introduction of V3FactoryOwner.sol and UniStaker.sol to facilitate the collection and distribution of protocol fees.
- Transparent Voting: Clear voting process in Snapshot and on-chain for transparent community participation.
In a move aimed at strengthening Uniswap’s decentralized and engaged governance, the Uniswap Foundation has put forward a comprehensive proposal to upgrade the protocol’s governance system.
The proposal, led by the UF governance team, has the main objective of rewarding UNI token holders who have staked and delegated their tokens in the project ecosystem.
🔈 New Governance Proposal Posted 🔈
UF Governance Lead @eek637 just posted a proposal to upgrade Uniswap Protocol's governance system. Specifically, this upgrade would reward UNI holders who have staked and delegated their tokens.
— Uniswap Foundation (@UniswapFND) February 23, 2024
The motivation behind this proposal lies in the crucial importance of active and engaged governance to ensure the long-term health and success of the Uniswap protocol.
In a constantly evolving environment, where innovation and adaptability are essential, robust governance becomes even more relevant.
Therefore, this update is proposed as a means to invigorate and strengthen the existing governance system.
The proposal introduces two new smart contracts, V3FactoryOwner.sol and UniStaker.sol, designed to facilitate the programmatic collection and distribution of protocol fees to bettors.
These contracts are designed to integrate seamlessly with the current Uniswap ecosystem
While providing enhanced functionality for fare collection and distribution.
To ensure transparency and community participation, the proposal includes a clear and structured governance process.
This includes a Snapshot vote and a chain vote, allowing different stakeholders to express their opinions and make informed decisions about the proposed update.
It is recognized that the introduction of protocol fees could have an impact on liquidity and trade execution.
Therefore, UF has commissioned a report from Gauntlet to evaluate potential outcomes and provide a framework for assessing the impact on liquidity and trade execution.
Ultimately, the proposal seeks to not only incentivize active and engaged delegation, but also foster a sense of responsibility and participation in the project community.
By aligning the interests of UNI token holders with the long-term success of the protocol, this upgrade is expected to contribute significantly to the sustainability and continued growth of Uniswap.
The proposal to strengthen Uniswap governance represents a crucial step forward on the path to a more robust and resilient ecosystem.
With an engaged community and transparent governance, Uniswap is well positioned to continue leading innovation in the DeFi space and beyond.
