DeFi

Uniswap’s ‘fee change’ vote sends token up 20% – here’s what it means for investors – DL News

Published

8 months ago

29 May, 2024

Uniswap's 'fee change' vote sends token up 20% – here's what it means for investors – DL News

Uniswap will begin another vote on a “fee change” proposal on Friday.
The proposal is designed to boost participation in the Uniswap community.
However, some members fear this could prompt greater scrutiny from the SEC.

Uniswap DAO members will begin voting on a proposal on Friday that moves the cooperative closer to activating the so-called “fee change.”

For years, proponents have argued that enabling the fee change would be a boon for investors in Uniswap’s governance token, UNI, by creating a way for them to share in Uniswap’s success.

Uniswap has collection more than $3.6 billion in fees since its launch nearly five years ago.

“A lot of people assume that one day this thing will be activated and I will get revenue,” said Getty Hill, co-founder of GFX Labs. DL News.

“Otherwise, there’s not really a reason to symbolize these things in the first place,” he said.

GFX Labs is one of the largest participants in the Uniswap DAO, helping to manage the network.

Uniswap, the largest decentralized exchange on the Ethereum blockchain, processed more than $20 billion in transactions over the past week, according to data from DefiLlama. UNI jumped more than 20% on the announcement of Friday’s vote.

But enabling the fee change isn’t a done deal, according to Hill.

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“This is another vote in a series of many votes, and it will take more votes until we get to the point where the revenues start flowing in,” Hill said.

What is the fee change?

UNI tokens grant membership to the Uniswap DAO, the digital cooperative that runs the exchange, as well as the right to propose and vote on changes.

The proposed fee change would divert some of Uniswap’s revenue to UNI token holders.

THE last version of the proposal – and the first to benefit from the support of the Uniswap Foundation, a non-profit organization responsible for supporting the protocol – is also designed to accomplish something else: boost otherwise lackluster participation in the DAO.

Under the current fee change proposal, only those who “delegate” their tokens for use in protocol governance will earn revenue via the fee change. Delegation occurs when users lend the voting rights attached to their governance tokens, usually to subject matter experts. Token holders can also delegate.

“Parasitism and apathy remain existential risks to the sustainability of the Uniswap protocol,” read the February 23 paper. proposal, written by Erin Koen, Head of Governance at the Uniswap Foundation. “Less than 10% of UNIs in circulation are used to vote on any given proposal.”

Friday’s vote ‘lays the foundation for autonomous tax collection and distribution’, Koen wrote on the Uniswap governance forum. “Additional votes will be required to enable fees in Uniswap V3 pools.”

Koen did not return immediately DL News” request for comment.

That process may not conclude until the second half of August, Hill said.

And while he’s confident Friday’s rather technical proposal will pass, he’s less certain that subsequent votes that actually activate the fee change will garner enough support.

“I’m optimistic, but I would by no means say this is a certainty,” he said.

The SEC is taking shape

That’s because a regulatory cloud still hangs over this effort.

“We have heard questions about whether the proposal could make it more likely that UNI will be scrutinized more closely” in the United States, the foundation said. wrote in 2022 in response to an earlier, unsuccessful effort to activate the fee change.

“Regulators or private litigants could file lawsuits against the DAO and seek to hold UNI token holders liable.”

Indeed, the Securities and Exchange Commission signaled last month its intention to prosecute Uniswap Labs – the company that built the Uniswap protocol – for violating federal securities laws.

Among other things, the SEC alleged that UNI is an unregistered security, according to Uniswap Labs.

It was a significant escalation in the SEC’s war on crypto, marking the first time the regulator turned its ire on the developers of a major DeFi protocol.

Additionally, some delegates are concerned about the tax implications of enabling the fee change, according to Hill.

Others simply don’t like the proposal, fearing it will drive away liquidity providers, who currently earn all the revenue generated by the protocol.

Liquidity providers deposit their crypto into Uniswap to facilitate trading.

“There are still a lot of opinions floating around about how this should be done,” Hill said. “It’s one thing to talk about implementation and debate infrastructure, but it’s a whole other thing to say, ‘Hey, let’s finally turn it on.’”

Aleks Gilbert is a DeFi correspondent at DL News. Do you have any advice? Send him an email to aleks@dlnews.com.

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Related Topics:un-exchange uniswap laboratories United

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DeFi

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Published

6 months ago

29 July, 2024

CoinFlix Staff

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Bonk and Pepe appear set to net new investors 10x to 100x returns over the next 12 months. However, cryptocurrencies in the DeFi play-to-earn gaming sector could offer even greater returns. As August approaches, Rollblock is emerging as a standout DeFi play-to-earn gem with the potential to 100x-1000x gains in the fourth quarter and beyond.

The project features an innovative revenue sharing model and exceptional accessibility, attracting players and investors. Additionally, Rollblock’s extensive game library of over 150 titles and enhanced sports betting are further driving excitement for the platform. Cryptocurrency analysts are expecting a sudden surge in demand. 800% a push for Rollblock from the beginning of September.

Bonk remains strong despite market fluctuations

While most well-known cryptocurrencies struggled throughout July, Bonk remained strong. As one of the highest-grossing meme cryptocurrencies of 2024, Bonk rose over 24% in July, while most cryptocurrencies experienced negative fluctuations.

Investors looking to add a relatively safe memecoin to their portfolio should consider Bonk. While Bonk is unlikely to generate explosive gains of 250x to 1,000x from here on out, Bonk could still theoretically provide returns in the 20x to 100x range.

Pepe should see a big rise in the next bull run

Alongside Bonk, Pepe has yet to go through a bull run. This means that there are still substantial gains to be made from Pepe over the next 12 months.

Pepe is down 4% in 30 days, but that shouldn’t worry Pepe investors in 2024. Experts believe Pepe’s best days are still ahead, with crypto analysts predicting a 10x to 50x surge in the next election cycle around November.

In the long term, Pepe could surpass the 100x mark for today’s investors. However, Pepe is a memecoin, and one should exercise caution when investing in purely speculative assets that have no utility.

Rollblock’s Unprecedented Hype Potential Could Push It Past 100x Valuation in Q4

Rollblock is a GambleFi Play-to-Earn token that integrates centralized and decentralized gambling on a single platform. By allowing players to earn rewards through active participation and gameplay, the platform creates a compelling incentive structure that appeals to both casual and competitive players.

With its cutting-edge blockchain technology, Rollblock offers top-notch security that keeps bets and transactions on the platform secure. The platform’s lack of KYC mandates appeals to both users who value anonymity and security.

Rollblock’s revenue sharing model, which allocates up to 30% of casino revenue to RBLK token holders, is a major draw for investors. The model involves burning half of the repurchased tokens and distributing the other half to stakers, increasing the token’s value and encouraging long-term investment.

The platform is also constantly evolving thanks to user feedback which has enabled updates such as the upcoming sports betting feature within the platform’s casino. This addition will complement Rollblock’s extensive game library of over 150 titles, ranging from traditional poker to innovative blockchain-based games.

RBLK is expected to emerge as one of the leading DeFi tokens in 2024. With a price of $0.0172 with impressive growth potential and over 140 million tokens sold recently, Rollblock is on track to enter the top 100 cryptocurrencies by Q4, making today a lucrative time to buy RBLK tokens.

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DeFi

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Published

6 months ago

29 July, 2024

CoinFlix Staff

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Veteran cryptocurrency investor Arthur Cheong believes the digital asset sector offers long-term holders a golden opportunity.

Cheong, the founder of DeFiance Capital, tell His 171,700 followers on social media platform X indicate that he believes decentralized finance (DeFi) is hugely undervalued.

According to Cheong, DeFi projects are innovating at a rapid pace and leaving traditional financial (TradFi) companies in the dust.

“It’s been a long time since I’ve been this excited about the risk/reward and potential upside of DeFi. This is probably the most misjudged moment since the pre-DeFi summer of 2020, with extremely promising prospects.

I see opportunities not only in OG (original) DeFi, but also in some newer projects that are evolving rapidly and growing at a pace that fintech startups will do anything to match.

The veteran investor also believes that crypto is now here to stay following recent launch from the Ethereum spot market (ETH) exchange-traded funds (ETFs) last week.

“Overall, the floodgates are open and there is no turning back. TradFi asset managers will continue to launch new crypto products because, guess what: there is huge demand for them!”

I expect them to launch actively managed crypto ETFs [in the] coming years. ”

Earlier this month, Cheong laid that it might be a bad strategy for cryptocurrencies to seek mass adoption, believing that digital assets are designed to disrupt several key financial sectors.

“I think we should accept that cryptocurrencies may not be suited for mass adoption like Web2, but rather are optimized for some narrow but very high-impact use cases like stateless global money, cross-border payments, and decentralized finance.

Chasing mass adoption of normies may be chasing the wrong Grail from the start.

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