Uniswap Foundation's post read, "Next Friday, May 31, the UF will initiate the onchain vote to upgrade the Protocol so that its fee mechanism can reward UNI token holders that have staked and delegated their tokens."
The Uniswap Foundation has announced a crucial upcoming vote to enhance the fee mechanism within its protocol. Due for voting on May 31, the upgrade aims to introduce rewards for UNI token holders who have staked and delegated their tokens, thus enhancing protocol incentives.
In a recent forum post, Uniswap noted that the proposed upgrade sets the stage for future autonomous fee collection and distribution. The new mechanism aims to make fee adjustments more dynamic, reduce the governance workload, and maintain neutrality within the protocol. The underlying contracts have undergone three audits and a week-long contest, revealing no significant issues. A $1M bug bounty for the codebase, managed by Immunefi, is scheduled to go live next week.
Uniswap is planning another upgrade to streamline the fee-setting process. This initiative will aim at increasing efficiency and reducing the governance burden on delegates, ensuring the protocol remains neutral. Feedback from the community and collaboration with Scopelift have been integral in designing this new mechanism.
UNI holders intending to vote on this proposal must delegate their UNI tokens, either to themselves or a third party, before the commencement of the vote. Assuming a successful vote, Uniswap will post a Request for Comments (RFC) in the forum detailing the steps for implementing the new fee mechanism.
