Uniswap Labs will release an Ethereum rollup before the end of the year. The rollup is based on staked UNI tokens.UNI rose more than 10% on Thursday.
Uniswap's UNI token surged 10% on Thursday after parent company Uniswap Labs announced the launch of its own Ethereum-based blockchain, also called Rollup.
Essentially, that blockchain, Unichain, shares its revenue with people who choose to lock or “stake” their UNI tokens.
According to DefiLlama data, Uniswap was the seventh-largest protocol in decentralized finance on Thursday, with about $4.5 billion in user deposits. It has collected more than $3.8 billion in fees since its launch nearly six years ago.
UNI is the protocol's governance token, allowing holders limited control over its features and development. About 400,000 crypto wallets held UNI on Thursday Etherscan.
UNI holders have long been demanding a cut in Uniswap earnings.
Proponents of turning on UniSwap's so-called fee switch argue that it would be a boon to UNI investors by creating a way to share in the success of the protocol.
Over the years, proposals have failed to move forward due to fears that they would run afoul of US securities laws.
A recent proposal to activate the fee switch would direct a portion of Uniswap's revenue to UNI holders who have “represented” their tokens for use in protocol governance. Delegation is the lending of voting rights by users attached to their governance tokens, typically to subject matter experts.
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However, in May, the Uniswap Foundation, a non-profit that supports the Uniswap protocol, canceled a planned vote on the fee switch on the day voting was set to open.
Erin Coen, the foundation's governance lead, said the unnamed shareholder had raised an issue that required “additional attention on our part,” but did not specify what the issue was.
Since then the Uniswap Foundation has remained silent on the matter. Executive director Devin Walsh did not immediately return calls NewsRequest for comment on Thursday.
Just like Ethereum, Unichain does depend on In a distributed network of computers called “validators” to process transactions.
To act as a validator, users must stake their UNI in exchange for rewards.
But stacking is not a substitute for a fee switch, Uniswap representatives said. News.
“Unichain is a positive step forward for Uniswap and the DeFi ecosystem,” said Alice Corsini, governance analyst at Uniswap spokesperson Karpatkey.
“While we're still getting into the mechanics of it, we see the Unchain model as an effort focused on rewarding a group of active validators, while the fee switch discussion is aimed at the community at large.”
Attis Elsts, researcher and Uniswap spokesperson, agreed.
“I'm glad to see that the UNI token is finally getting some use outside of administration,” Elsts said.
But this is not a substitute for a fee switch, he added.
“Unless the DAO votes to permanently disable the fee switch in some deployments, that option remains forever, as blockchain contracts are immutable.”
Unichain went live on the Ethereum Test Network on Thursday. According to the Uniswap Foundation, the final version will be deployed to Ethereum's main network before the end of the year.
Alex Gilbert News'Diffie correspondent from New York. You can reach him at [email protected].
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