Uniswap (UNI) has experienced a significant surge in price, climbing over 50% in just 24 hours after the Uniswap Foundation proposed a major overhaul to the protocol’s governance system. This increase has propelled it to become the best performing token among the top 100 cryptocurrencies, with its current price standing at $11.20. The proposed upgrade aims to encourage active and thoughtful delegation by rewarding users who stake their tokens on the network.
As a decentralized exchange (DEX) built on Ethereum, Uniswap allows users to swap Ethereum-based tokens without the need for a sign-up process, setting it apart from centralized exchanges like Coinbase. With nearly $877 million in tokens traded in the past day, Uniswap is currently the largest DEX by 24-hour volume. Those holding the governance token, UNI, have the opportunity to participate in voting for how the protocol is managed, with a crucial vote on the proposed governance overhaul set to take place on March 1.
The Uniswap Foundation believes that incentivizing UNI token holders to select delegates who actively engage with the protocol will contribute to the growth and success of the platform. This strategic move not only highlights the dynamic nature of the cryptocurrency market but also emphasizes the importance of community involvement in shaping the future of decentralized finance (DeFi) platforms like Uniswap.