Uniswap Announces $165 Million in Funding, Boosts Token Holder Rewards

Uniswap (UNI), a leading decentralized exchange, has secured a significant $165.5 million in funding to fuel its growth and further development.

The funding is split into three key areas: $95.4 million allocated to the Uniswap Foundation’s grant budget, $45 million set aside for liquidity incentives, and $25.1 million earmarked for operational expenses over the next two years.

The decision to approve this funding was made through two governance proposals voted on by the Uniswap community, aimed at supporting the Unichain Layer 2 and the upcoming Uniswap v4 protocols. The funding will enable these initiatives to thrive, promoting further scalability and innovation within the platform.

One of the most notable aspects of this new funding round is the introduction of a long-awaited fee-sharing model. With this new structure, UNI token holders will now receive a portion of the protocol fees—a move that had been anticipated for some time after previous attempts at implementing such a model failed.

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Following the approval of the fee-swap mechanism, the price of UNI saw an increase of up to 10%, signaling strong market enthusiasm for the update. This change is expected to bring increased rewards to token holders, boosting their involvement and support for Uniswap’s growth in the DeFi space.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.