Decentralized crypto exchange Uniswap (UNI) is skyrocketing after an upgrade was proposed to reward its token holders.
In a new announcement, The Uniswap Foundation say The protocol’s board leader has put forward a proposal that would reward traders who have deployed and delegated UNI.
According to the team, the proposal is of paramount importance for the long term good luck of the protocol.
“Potential Impact: Decentralized, resilient and engaged governance is imperative for the long-term health and success of the Protocol. We believe this upgrade will strengthen and strengthen Uniswap’s governance.”
News of the proposal sent UNI flying, as the digital asset went from a seven-day high of $7.06 to a peak of $11.62 in just 24 hours, a gain of just over 50%. UNI has since retreated and is trading at $11.20 at the time of writing.
According to the Uniswap Foundation, the proposal will do just that Insert new delegates who have a proven commitment to the project.
“We believe that UNI token holders will be incentivized to elect delegates whose votes and involvement in the Protocol will lead to the Protocol’s growth and success.
If this proposal is successful, we believe that there will be an influx of new delegations. And because existing delegators will have to redelegate to stake their tokens, we will see a shift from the ‘outdated’ existing delegation to delegates who have proven their commitment to supporting the protocol.
Furthermore, this mechanism can continue to function on its own in the future – continuing to encourage committed delegation without the need for any additional facilitation.”
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Featured image: Shutterstock/Ekaterina Glazkova