Share this article
Uniswap Passes $165M Funding Plan After DAO Vote
Part of the steps toward sharing revenue would be to make the Uniswap DAO a legal entity.
Updated May 7, 2025, 4:21 p.m. Published Mar 20, 2025, 11:40 a.m.
What to know:
- The Uniswap community has approved two governance proposals aimed at expanding the Unichain network and Uniswap V4 protocol, including a new grants program and liquidity incentives.
- The proposals, which received over 80% approval from UNI token holders, could initiate a 'fee switch' that would redirect some protocol revenue from liquidity providers to UNI holders.
- "Uniswap Governance" may become a legal entity as part of these changes, potentially paving the way for a governance proposal for delegators to earn protocol revenue.
The Uniswap community has greenlit two governance proposals to propel the growth of the Unichain network and Uniswap V4 protocol.
The initiatives, dubbed "Uniswap Unleashed," introduced a new grants program and liquidity incentives while hinting at initial steps for a “fee switch,” a long-contested protocol vote that would pay out a portion of trading fees to holders of Uniswap’s UNI.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Relevant governance posts have not directly mentioned a fee switch but noted plans to “activate revenue.”
The foundation requested $95.4 million for its grants budget and $25.1 million for operations over two years, plus $45 million for liquidity incentives to attract users and fuel ecosystem growth through developer campaigns.
Both proposals passed with more than 80% of UNI token holders in favor, governance data shows.
The passage could now put into motion the fee-switch, a longtime community goal that would shift some protocol revenue — currently over $1 billion annually — from liquidity providers to UNI holders. Its activation, delayed by past failed votes, hinges on legal preparations by the foundation.
The proposal was initially proposed in July 2021 to pilot the switch for a small set of Uniswap protocol pools. The switch will not increase fees for users but will retain a small portion of what is currently paid out to liquidity providers (LP), or users who lock up their tokens on Uniswap in exchange for fee rewards.
However, it could mean lesser fee earnings for Uniswap’s LPs and more rewards for holders of Uniswap’s native token UNI, which accrues value for UNI holders — leaving the proposal hanging for the past few years. One such vote failed to pass in 2023 after being voted against by influential token holders.
Part of the steps toward sharing revenue would be to make the Uniswap Governance a legal entity, giving it clarity on legal status and the ability to contract with other protocols.
“If our vetting is successful and we believe the creation of a legal entity for Uniswap Governance is in its best interest, we would propose to Governance to implement a legal entity structure,” the proposal said.
“If adopted, this step would pave the way for the potential introduction (or re-introduction) of a governance proposal for delegators to earn Protocol revenue,” it noted.
UPDATE (May 7, 16:20): Updated sub-headline to clarify Uniswap DAO will become a legal entity, not the foundation.
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Internet Computer climbs back to $3 as short-term momentum improves
ICP pushed above the $3 level on rising activity, holding recent gains as traders reassess near-term direction.
What to know:
- ICP rose about 2.7% to roughly $3.00, reclaiming a closely watched psychological level.
- Trading activity increased during the move higher, accompanying the push through resistance near $2.95–$3.00.
- Price has since stabilized just above $3, keeping attention on whether the level can hold as near-term support.
Top Stories
