Why Uniswap crypto exploded by 90%

While the lion’s share of the crypto market has seen little price fluctuation recently, Uniswap (UNI) has seen a notable increase. Yesterday, the price of Uniswap shot up more than 70 percent in just over an hour, reaching its highest level in almost two years. The price explosion was most likely caused by a proposal for a new compensation mechanism, which is good news for UNI holders.

New governance model for Uniswap

Eric Koen, Governance management The Uniswap Foundation submitted a proposal for Uniswap Protocol Governance or Uniswap’s governance model yesterday afternoon.

Uniswap is the first and largest decentralized exchange (DEX) on Ethereum (ETH). According to DeFiLlama, Uniswap has one Total value locked (TVL) or the total value locked in smart contracts of $4.456 billion.

“Specifically, I believe we need to update the protocol so that the reward mechanism provides rewards to UNI token holders who have staked and delegated their tokens,” i.e wrote Koen on the social media platform X.

Simply put, the Uniswap Foundation, a non-profit organization dedicated to supporting the growth of Uniswap, wants to update the system so that the system can distribute fees evenly to UNI holders who have staked their tokens and lost their voting rights.

It is important to mention that this is only a proposal for now and therefore the plans have not yet been approved.

Koen also wrote down

UNI price is rising like a rocket

Immediately after the proposal was announced, UNI’s stock price skyrocketed.

Shortly after 3 p.m., just before Koen posted his message. After just over an hour, the price was more than 70 percent higher at $12.28.

After a slight correction to just above $10.60, a slow increase has brought the price to the current level of $12.45. An all-time high of $12.77 was observed this morning, representing a total increase of 92 percent from the $7.16 mentioned above.

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