The Uniswap community has overwhelmingly supported two major governance proposals, securing a substantial $165.5 million investment for the Uniswap Foundation. This funding aims to accelerate ecosystem growth, support innovation, and lay the foundation for long-term sustainability . This decision follows Uniswap’s launch of Uniswap v4 and Unichain, positioning the protocol for further expansion. The approval of these proposals has also generated a wave of optimism among community members, leading to a surge in UNI’s market activity. The Uniswap Foundation recently announced the success of these governance proposals, introduced as part of the " Uniswap Unleashed" initiative on February 14. The approval marks a turning point for Uniswap, enabling new opportunities to expand its network and create additional value for participants. One of the most crucial elements of this governance update is the groundwork for activating the highly anticipated “fee switch.” This mechanism is expected to enhance Uniswap’s financial sustainability and introduce rewards for UNI token holders. Additionally, it signals a broader shift toward a more balanced and incentivized ecosystem. According to the approved proposal, 65% of Unichain’s net chain revenue will be allocated to UVN validators and stakers once the UVN network launches. The Uniswap Foundation has outlined four key priorities for 2025 and beyond. The first focus is on scaling network supply by optimizing liquidity distribution across Ethereum Virtual Machine (EVM) chains, ensuring smoother transactions and increased efficiency. The second goal is to expand network demand by fostering DeFi innovation and attracting developers through funding programs, infrastructure support, and educational resources designed to enhance the development lifecycle. Strengthening governance is also a priority, with measures in place to activate revenue streams, onboard new contributors, and explore legal frameworks for governance purposes. A portion of Unichain’s revenue will be distributed among validators and stakers to encourage broader participation. Finally, the foundation plans to launch a Core Contributor Program that will build aligned development teams to drive protocol advancements and secure Uniswap’s long-term success. The total funding package includes $120.5 million , with $95.4 million dedicated to grants and $25.1 million assigned for operational expenses . The proposal emphasizes that this investment will be backed by industry-leading transparency standards, ensuring that funds are allocated effectively. The second proposal, which received input from Gauntlet, focuses on liquidity incentives to stimulate the growth of Uniswap v4 and Unichain. The objective is to attract liquidity providers, traders, and developers to these platforms, reinforcing their role in the future of decentralized finance (DeFi). To support this effort, the Uniswap Foundation requested $45 million to fund liquidity incentives. The funds will be managed using the Aera platform, allowing Uniswap Governance to maintain control and recall any unutilized funds if necessary. Gauntlet has already established an Aera vault on the Ethereum mainnet, which will now be reactivated to support ongoing incentives. A total of 7,588,532 UNI tokens will be deposited into the vault to ensure liquidity remains strong. Following the announcement, UNI experienced a sharp increase in value, reflecting growing confidence in the protocol’s future. Trading volume also surged significantly, highlighting the increased activity within the market. With these governance updates in place, Uniswap is poised for continued expansion, driving innovation and reinforcing its position as a leading decentralized exchange in the evolving DeFi landscape.
