#What is happening with Uniswap's governance vote?
Uniswap is entering a crucial phase as its governance vote on the UNIfication proposal nears its conclusion. The UNI token has seen an upward trend, rising in value as the voting deadline approaches.
The UNIfication proposal is aimed at implementing protocol fees and establishing a direct token-burning mechanism to benefit the Uniswap ecosystem. Voting began on December 20 and will conclude within the next 20 hours.
According to recent data from CoinGecko, UNI's price surged from approximately $5.40 to $6.40 at the onset of the voting window, although it later dipped along with other cryptocurrencies. Currently, the token has experienced a modest increase of about 1.5% in the past 24 hours, placing its trading price close to $6.
As of now, the voting outcomes lean heavily toward approval, with over 120 million votes cast in favor of the proposal and only 742 votes against it. Importantly, this far exceeds the required quorum of 40 million votes, though results will remain tentative until the voting period officially closes.
The UNIfication proposal, developed by Uniswap Labs alongside the Uniswap Foundation, aims to activate Uniswap’s protocol fees and implement a mechanism that burns UNI tokens. The plan includes gradually rolling out these changes across various liquidity pools and networks.
Additionally, the proposal involves burning 100 million UNI tokens currently held in the treasury and consolidating operational functions under Uniswap Labs. This restructuring seeks to eliminate product-level fees and emphasize the expansion of protocol usage.
Proponents of the plan argue that it creates a sustainable model where increased usage of the protocol can lead to a decrease in token supply, ultimately aligning the incentives of Uniswap Labs more closely with the wider Uniswap ecosystem.