The Uniswap community has approved two significant governance proposals, securing $165.5 million for the Uniswap Foundation. This funding aims to boost ecosystem growth and innovation, ensuring long-term sustainability. The decision comes after the launch of Uniswap v4 and Unichain, setting the stage for further expansion and increased market activity for UNI tokens.
The proposals were part of the “Uniswap Unleashed” initiative, announced on February 14. They mark a pivotal moment for Uniswap, opening new opportunities for network expansion and value creation.
A key aspect of the governance update is the groundwork for the “fee switch,” which will enhance financial sustainability and provide rewards for UNI holders. Once the UVN network launches, 65% of its net revenue will go to UVN validators and stakers.
The Uniswap Foundation has identified four main priorities for 2025 and beyond. First, it aims to scale network supply by optimizing liquidity across Ethereum Virtual Machine (EVM) chains for smoother transactions.
Second, it plans to increase network demand by supporting DeFi innovation and attracting developers through funding and educational resources. Strengthening governance is also crucial, with measures to activate revenue streams and onboard new contributors. Lastly, the foundation intends to launch a Core Contributor Program to build development teams focused on protocol advancements.
The funding package includes $120.5 million, with $95.4 million for grants and $25.1 million for operational costs. The investment will follow high transparency standards to ensure effective fund allocation.
Additionally, a proposal for $45 million in liquidity incentives aims to attract liquidity providers and traders to Uniswap v4 and Unichain. The Aera platform will manage these funds, allowing governance to control and recall unutilized amounts.
Following the announcement, UNI’s value surged, reflecting increased confidence in Uniswap’s future. Trading volume also rose significantly, indicating heightened market activity. With these updates, Uniswap is well-positioned for continued growth and innovation in the decentralized finance landscape.
