Home Metaverse Uniswap’s proposal to collect fees from LPs stumbles during first poll

Uniswap’s proposal to collect fees from LPs stumbles during first poll

0 comment

A poll of Uniswap’s governance community on June 1 revealed divided support for a feature that could ultimately collect fees from liquidity providers.

Opinion polls reveal mixed support

upon May 10thGFX Labs has released a proposal titled “Making Protocol Fees Operational”, proposing to collect fees from liquidity providers for the financial management of projects.

A poll will be held on June 1 to determine support for the proposal Finished with a close result. About 45% of the votes expressed opposition to charging. On the other hand, 42% of the votes favored charging 1/5th of the pool fee across all Uniswap v3 pools, while 12% of votes supported the minority to charge 1/10th of the pool fee across these pools. supported.

Support for paid combined outweighed opposition to paid (55% vs. 45%), but no category received more support than the “free” category.

56 million UNI tokens ($280 million) were used to vote.

These results do not necessarily preclude further voting on this proposal. A poll page suggests that the poll data will be used to prepare a more formal “temperature check” vote. Despite this, the opposition to charging seems to be quite strong.

Should Uniswap introduce fees?

GFX Labs’ original proposal said the fee would prove that Uniswap can generate revenue. This fee will also demonstrate that the liquidity provider is operating professionally and earning enough revenue to not require a rebate.

Governance members expressed tentative support for the idea, but many, including GFX itself, noted that such a decision could have regulatory and legal implications. The proposal could also require payment of income tax.

Finally, the current proposal indicates that this plan will have no impact on the fees paid by most Uniswap users. Instead, we collect fees directly from liquidity providers.

As with most decisions of Uniswap, the election will be made by users holding significant stakes in Uniswap’s UNI token. Similar votes have recently taken place on other proposals, including Coinbase’s Base network and Binance’s expansion to the BNB chain.

An article that Uniswap’s proposal to collect fees from LPs stumbled in the first poll was first published on CryptoSlate.

index (2)

About Us

Coingeography is a principal independent digital media resource with a coverage of comprehensive news on Crypto assets, NFT, Metaverse and the surging Web 3 space. We here deliver the most authentic and precise news from the arena of the Web 3 space and crypto assets. 

Feature Posts

Newsletter

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

Copyright ©️ All rights reserved. | CoinGeography – Powered by Corum8