Uniswap Community Approves $165.5M to Boost Ecosystem Growth

In Brief:

The Uniswap Foundation has secured $165.5 million in funding to drive DeFi innovation, liquidity incentives, and governance improvements.
Following the vote, UNI surged 7.5% to $6.80, with trading volume spiking 207.9%.

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The Uniswap community has approved two major governance proposals, allocating $165.5 million to fuel network expansion and long-term sustainability. The funding will be split into:

• $120.5M for grants and operational costs, including developer programs and ecosystem infrastructure.
• $45M for liquidity incentives, attracting liquidity providers (LPs), swappers, and developers to Uniswap v4 and Unichain.

A critical outcome of this vote is the activation of the long-awaited "fee switch", designed to enhance protocol revenue distribution and reward UNI token holders. This shift marks a turning point for Uniswap’s governance structure, aligning incentives for validators and protocol contributors.

To ensure transparency, funding will be managed via the Aera platform, giving Uniswap Governance full control over fund allocation and recall mechanisms.

Market reaction has been positive, with UNI’s price surging 7.5% to $6.80 and trading volume skyrocketing by 207.9%, signaling strong investor interest in the ecosystem’s expansion.

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