TL;DR
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In May, the Uniswap community voted in favor an offer on whether or not to introduce fees for liquidity providers on the platform.
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In the end, 45.3% percent of the token vote supported the ‘no fee’ option, while the majority of voters (54.6%) were in favor of a fee – they just couldn’t agree on how much it should be .
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Based on the executive director of the Uniswap Foundation Twitterit sounds like the Uniswap Foundation now has the feedback they need, they’ll have a new proposal to vote on, and there’s a good chance fees will come to Uniswap.
Full story
Have you ever spoken to a group of people who are all at the same bank, and who want to pay more fees?
Neither! But that’s what just happened with Uniswap.
Uniswap is the world’s largest decentralized exchange (DEX).
Unlike a centralized exchange (e.g. Coinbase, Binance, etc.) that relies on a company for its governance, DEXs allow users to trade directly with each other, peer-to-peer, without anyone in the middle is needed.
But DEX’s can still be changed/improved through community votes!
Which brings us to this story: in May, the Uniswap community voted in favor an offer on whether or not to introduce fees for liquidity providers on the platform.
The idea is that Uniswap, like other exchanges, should charge fees to generate revenue that can then be used to improve the product.
In the end, 45.3% percent of the token vote supported the ‘no fee’ option, while the majority of voters (54.6%) were in favor of a fee – they just couldn’t agree on how much it should be .
There were two options for fees: one-fifth or one-tenth of the pool fee.
Since the vote was split between those options, the “no cost” option won and there will be no changes to Uniswap for a while.
Uniswap Foundation Executive Director, Devin Walsh, said on Twitter that the poll was for feedback purposes only and was not part of a formal governance process.
Reading between the lines, it sounds like the Uniswap Foundation now has the feedback they need, they’ll have a new proposal to vote on, and there’s every chance fees will come to Uniswap.
Happy Friday everyone.