Uniswap, the decentralized exchange (DEX) platform, recently conducted an initial poll to gauge support for collecting fees from liquidity providers (LPs). However, the poll failed to gain enough support from the community, resulting in the proposal being rejected.
The proposal was put forward by Uniswap’s governance forum, which is responsible for making decisions on the platform’s future development. The proposal suggested that Uniswap should start collecting a 0.05% fee on all trades made on the platform, with half of the fee going to LPs and the other half going to the Uniswap treasury.
The idea behind the proposal was to incentivize LPs to provide liquidity to the platform, as they would receive a share of the fees collected. This would also provide a source of revenue for the Uniswap treasury, which could be used to fund further development of the platform.
However, the proposal faced significant opposition from the community, with many arguing that it would discourage LPs from providing liquidity to the platform. Some also argued that it would make Uniswap less competitive compared to other DEX platforms that do not charge fees.
The poll was conducted using Uniswap’s governance token, UNI, which is used to vote on proposals and make decisions on the platform’s future development. In order for the proposal to be accepted, it needed to receive at least 40 million votes in favor. However, it only received around 39 million votes in favor, falling short of the required threshold.
Despite the proposal being rejected, it has sparked a wider debate within the community about the future direction of Uniswap. Some argue that the platform needs to find a way to generate revenue in order to fund further development and remain competitive. Others argue that Uniswap’s decentralized nature is what makes it unique and that introducing fees would go against this ethos.
Overall, the failed poll highlights the challenges faced by decentralized platforms in making decisions that are in the best interests of the community. While Uniswap’s governance forum provides a mechanism for decision-making, it is ultimately up to the community to decide whether proposals are accepted or rejected. As the platform continues to grow and evolve, it will be interesting to see how these debates play out and what direction Uniswap takes in the future.
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- Source: Plato Data Intelligence.