A proposal to enable protocol fees for the Uniswap decentralized exchange failed on June 1, potentially allowing liquidity providers (LPs) to continue to earn all revenue from swaps, according to the proposal’s official webpage. It narrowly missed being passed, with 45.32% of votes going to the “no fee” camp and 42.34% voting to charge liquidity providers one-fifth of the fees they receive from users. Another 12.3% voted to enact a fee charge of one-tenth and 0.04% voted to charge one-sixth.
The “no fee” camp won by a plurality, implying that supporters of a protocol fee may have prevailed if they had united behind a specific fee percentage.
Uniswap fee switch vote neck and neck in the final hours.
Fun fact, I don’t think any UNI vote that’s passed on snapshot has been turned down once proposed onchain. pic.twitter.com/lasYGYaELM
— Matt (@MattFiebach) June 1, 2023
The vote was a “temperature check,” or non-binding preliminary ballot; further refinements may be offered in the future as discussion continues.
Uniswap is governed by the Uniswap Decentralized Autonomous Organization (Uniswap DAO), consisting of holders of the Uniswap (UNI) token.
The exchange currently charges crypto traders 0.01% to 1% of each swap as a fee, depending on the particular pool they use. However, all these fees go to the liquidity providers or market…
