Uniswap community votes to approve two governance proposals worth a combined $165.5 million

Expanding its ecosystem, the Uniswap community voted to approve two governance proposals worth a combined $165.5 million in funding.

In a significant move to expand its ecosystem, the Uniswap community has voted to approve two governance proposals, worth a combined $165.5 million, to fund Unichain Layer 2 and Uniswap v4, among other initiatives.

The proposals, which members voted on over the past week, will see the Uniswap Foundation receive $95.4 million in grants and $25.1 million for operational costs. An additional $45 million will support liquidity incentives. In total, over 7.5 million UNI tokens, valued at about $52 million at current prices, will be deposited into an Aera vault on Ethereum mainnet.

The foundation said the sizable budget reflects a long-term commitment to growing the Uniswap ecosystem, fostering liquidity, and encouraging further development of decentralized finance solutions.

Major funding for expansion

These measures, described as part of the “Uniswap Unleashed” plan, also aim to bolster the recently launched Unichain Layer 2 network and Uniswap v4 protocol while laying the groundwork for a long-anticipated “fee switch.”

The plan will see the Uniswap Foundation receive $95.4 million in grants and $25.1 million for operational costs over the next two years. An additional $45 million will support liquidity incentives. In total, over 7.5 million UNI tokens will be deposited into an Aera vault on Ethereum mainnet. According to the foundation, the sizable budget reflects a long-term commitment to growing the Uniswap ecosystem, fostering liquidity, and encouraging further development of decentralized finance solutions.

These measures are part of a broader plan to expand the Uniswap ecosystem and support the development of new technologies and protocols. The new capital will be used to support Unichain, Uniswap v4, and liquidity incentives, all of which are crucial for boosting protocol growth and attracting new users.

A ‘fee switch’ is now closer to activation

The governance proposals also bring the long-debated fee switch one step closer. Under the switch, a portion of the protocol’s fees—currently directed to liquidity providers—would go to UNI token holders. Previous attempts to enable this revenue-sharing feature had stalled. Now, the foundation is expected to review legal frameworks to distribute protocol fees to governance participants, potentially offering UNI holders a direct financial stake in the platform’s success.

UNI price. Source: CoinGecko.

As Uniswap moves forward with these initiatives, the community’s attention will likely focus on whether the expanded funding and proposed fee switch can drive sustained growth. With over $1 billion in annualized fees and a developer-focused upgrade in Uniswap v4, the protocol aims to remain at the forefront of decentralized finance, offering both liquidity providers and token holders fresh opportunities for engagement and revenue.