Uniswap Foundation token rewards proposal passes temperature check vote

The Uniswap Foundation's proposed changes to the governance of the popular decentralized exchange Uniswap, including altering its fee mechanism to reward users who delegate and stake their UNI tokens on the platform, has unanimously passed a temperature check vote.

The temperature check vote — a snapshot poll to gauge initial Uniswap community sentiment on moving ahead with the proposal — began on March 1 and passed with 100% of delegates in favor after ending today at 1:30 p.m. ET. An on-chain vote will now follow, to be posted by the Uniswap Foundation on March 7.

"We’re excited to invigorate governance — incentivizing not only delegation but thoughtful and active delegation — by tying delegation to protocol fees," the Uniswap Foundation wrote in the proposal. "Specifically, we believe UNI token holders will be incentivized to choose delegates whose votes and engagement with the protocol will lead to the Protocol’s growth and success."

If the on-chain vote is successful, the community will then have the option to turn on fees, enabling the Uniswap protocol to automatically collect and distribute them to voting UNI token holders, and let governance control fee-related settings. “An Immunefi bug bounty will go into effect before the conclusion of a successful on-chain vote,” the Uniswap Foundation added.

Uniswap token price surges following the proposal

The price of Uniswap’s native token surged over 50% to around $11.40 immediately following the proposal announcement on Feb. 23. It is currently trading for $15.73, according to The Block’s price page — up around 14% over the past 24 hours, 45% over the past week and 165% in the last month.