Uniswap to provide $165 million in grants and liquidity incentives

The proposal is supported by over 80% of UNI native token holders

20.03.2025 - 15:25

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3 min

What’s new? The community of the leading decentralized crypto exchange (DEX) Uniswap has approved two proposals aimed at stimulating the growth of its own Unichain network and the fourth version of the protocol (Uniswap V4). The initiative, dubbed Uniswap Unleashed, offers a new grant program and liquidity incentives.

Voting on the community forum

What else is known? For the initiative, the Uniswap Foundation requested $95,4 million in grants from the Uniswap Decentralized Autonomous Organization (DAO), $45 million in liquidity incentives to attract users and developers, and $25,1 million to maintain operations for two years. The proposals were supported by more than 80% of UNI native token holders.

The implementation of Uniswap Unleashed could pave the way for a long-standing community goal: moving a portion of the protocol’s revenue from liquidity providers (LPs) to UNI holders. To date, Uniswap’s annual revenue from trading fees exceeds $1 billion.

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The proposal was first introduced in July 2021 and affected only a few Uniswap liquidity pools. It did not involve increasing fees for users.

According to the authors’ idea, UNI holders were to be allocated a portion of the revenues of liquidity providers for these pools, as well as a portion of the revenues of users who block their tokens on the platform

Adoption of the proposal would have meant a decrease in fee income for LPs and an increase in rewards for UNI holders. The proposal was opposed by influential UNI holders in 2023 and was not implemented.

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The revenue-sharing proposal would see Uniswap Foundation transition from a non-profit organization to a legal entity to clarify its legal status and ability to contract with other protocols.

UNI ranks 35th in the overall cryptocurrency market capitalization ranking with a market cap of $4,1 billion and is trading at $6,81, having added 0,7% overnight. Weekly growth amounted to 16%.

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