The Uniswap community has voted to support two governance proposals aimed at expanding the Uniswap ecosystem. These proposals will provide funding for the Uniswap Foundation’s grants program, liquidity incentives, and operational costs. The decision also takes an important step toward activating the long-discussed “fee switch.”
After this was announced, Uniswap’s UNI is up by more than 7% and is trading at $6.83 and the global market cap is at $4.1 billion.
A Step Toward Expansion
The proposals are part of the “Uniswap Unleashed” plan. This initiative is designed to help Uniswap grow and bring more opportunities for builders and users.
The Uniswap Foundation, which oversees the protocol’s development, said this marks the start of a new phase for the community.
A total of $165.5 million will be allocated. Of this, $95.4 million will go to the foundation’s grants budget. Another $45 million is set aside for liquidity incentives. The remaining $25.1 million will be used for operational expenses over the next two years.
The goal is to strengthen Uniswap’s position in the crypto space. The funds will support projects that make the network more scalable and valuable.
Boosting Liquidity and Development
One of the key focuses of this funding is to improve liquidity on Uniswap’s new platforms—Uniswap v4 and Unichain.
These initiatives will make trading smoother and more efficient. The Web3 risk management firm Gauntlet will handle these liquidity incentives. Their job is to attract new users and ensure steady growth.
There are also plans to support developers who build on Uniswap. The proposal includes campaigns that will encourage more developers to join the ecosystem. By doing so, Uniswap hopes to drive more innovation and long-term success.
Advancing Uniswap v4 and Unichain
Uniswap v4 launched in January 2025. It introduced a new feature called “hooks.” These allow developers to customize swaps, fees, and other interactions within the protocol. This upgrade makes Uniswap more flexible and appealing to developers.
Unichain is another major development. Built on Optimism’s technology, it is a Layer 2 network designed to handle more transactions at lower fees.
This makes trading faster and cheaper for users. The combination of Uniswap v4 and Unichain is expected to bring major improvements to the ecosystem.
Major Investment in the Future
To further support these changes, Gauntlet has set up an Aera vault on Ethereum’s mainnet. The vault will hold over 7.5 million UNI tokens, valued at about $52 million.
The price of UNI has already seen a rise of more than 10%. This shows growing confidence in Uniswap’s future.
In a statement, the proposal acknowledged the large amount of funding involved. However, it described this as a necessary investment. The goal is to ensure the success of Uniswap’s protocol and its growing ecosystem.
The approval of these proposals signals strong community support for Uniswap’s expansion. With major funding now in place, the focus will be on building a more powerful and accessible platform for traders, developers, and the wider crypto world.
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