Uniswap UNI Surges 60% Following New Upgrade Proposal

Uniswap’s native UNI has been on the surge in the last 24 hours, following a new proposal for an update for holders. The token gained 60% in value following a pitch by a Uniswap Foundation leader to overhaul the protocol’s decision-making.

Erin Koen, the foundation’s lead, proposes to “strengthen and invigorate” Uniswap’s governance. The proposed update would also reward UNI token holders who staked and delegated their tokens.

“I believe we should upgrade the protocol so that its fee mechanism rewards UNI token holders that have staked and delegated their tokens,” Erin Koen wrote in an X post.

Following the tweet, UNI saw a boom in price, likely meaning holders are fans of Koen’s proposal and the potential for it to move forward. UNI, at press time, is trading at $11.36, up $4 from Friday morning. “If approved by the community, Uniswap Governance’s resilience and decentralization will increase,” Koen adds in the X thread.

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The proposal by Koen is significant in it departs from Uniswap’s 2023 initiative to reward token holders with accrued fees. If the overhaul proposal is approved in a community vote, it would enable the permissionless and programmatic collection of protocol fees. Additionally, this will distribute the pro-rata to Uniswap UNI token holders who have staked and delegated their votes. The move, as indicated by the surge in UNI following the proposal, could see UNI boom beyond $12.