Decentralized crypto exchange Uniswap (UNI) is skyrocketing after an upgrade was proposed to reward its token holders.
In a new announcement, The Uniswap Foundation says the protocol’s governance lead has put forth a proposal that would reward traders who have staked and delegated UNI.
According to the team, the proposal is of utmost importance to the long-term success of the protocol.
“Potential Impact: decentralized, resilient, and engaged governance is imperative to the long-term health and success of the protocol. We believe this upgrade will strengthen and invigorate Uniswap governance.”
News of the proposal sent UNI flying, as the digital asset went from its seven-day of $7.06 to a peak of $11.62 in just 24 hours, a gain of just over 50%. UNI has since retraced and is trading for $11.20 at time of writing.
According to the Uniswap Foundation, the proposal will bring in fresh delegates who are proven to be committed to the project.
“We believe UNI token holders will be incentivized to choose delegates whose votes and engagement with the protocol will lead to the Protocol’s growth and success.
If this proposal succeeds we believe we will see an influx of new delegation. And because existing delegators will be required to re-delegate to stake their tokens, we will see a shift of ‘stale’ existing delegation to delegates who have proven their commitment to supporting the protocol.
Further, this mechanism can run on its own into the future – continuing to incentivize engaged delegation, without requiring any additional facilitation.”
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Featured Image: Shutterstock/Ekaterina Glazkova
