Uniswap Approves $165M Funding and New Fee Model to Boost Growth
20.03.2025 09:05
Uniswap has secured a $165.5 million funding proposal to fuel growth initiatives, following approval of two key governance proposals from its community. The funding breakdown allocates $95.4 million for grants via the Uniswap Foundation, $45 million for liquidity incentives, and $25.1 million for operational expenses over the next two years. A major highlight is the introduction of a new fee model that redistributes a portion of the exchange's fees directly to UNI token holders. This announcement follows a recent market uptick in Bitcoin and altcoins after moderate signals from the Federal Reserve, reflecting growing investor optimism. The positive market reaction is underscored by UNI's price surging by up to 10% and an increase in Uniswap open interest by 17.69% to $196.96 million. This move underscores Uniswap's commitment to enhancing its protocol through strategic funding and governance decisions that directly reward its community.
The approval of the $165M funding proposal and the new fee model is expected to have a positive impact on UNI's price. In the short-term, the immediate investor reaction, evidenced by a 10% surge and increased open interest, suggests strong bullish momentum. Looking at long-term dynamics, the strategic allocation of funds for grants, liquidity incentives, and operational support is likely to enhance the protocol's utility and adoption, promoting sustained price appreciation. Historical patterns associated with significant governance upgrades and proactive funding injections in similar altcoins further support an optimistic outlook for UNI.