Uniswap: 70% increase in 24 hours and new update
Uniswap, the market-leading DEX, saw a 70% increase in its UNI token over the weekend, rising from just over $7 to as high above as $12. There are several possible reasons for this surge:
- Governance update plan: The Uniswap Foundation recently presented a plan to update the protocol's governance model. The new plan aims to increase participation in governance and make the process more efficient.
- New rewards for staking and holding: the update plan includes the introduction of new "rewards" for users who stake or hold the UNI token. These rewards could include additional UNI tokens, reduced trading fees or access to exclusive features
- Delegate Race and GovSwap: the foundation also announced two new initiatives to encourage participation in governance. The first is a competition between delegates which will reward those who obtain the highest number of votes. GovSwap, on the other hand, is a platform that allows users to exchange their votes for UNI.
Updating Uniswap's governance model is an important step for the DEX. The problem of “non-participation” in governance is a common problem for many DeFi protocols. Uniswap's new plan aims to solve this problem by offering incentives for users to participate in the governance process.
Interestingly, the UNI price increase was predicted around December by some well-known "crypto influencers on X" such as EliZ (@eliz883 https://twitter.com/eliz883) and Crypto Tony (@CryptoTony__ https://twitter.com/CryptoTony__).
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