This is a critical governance move that will activate a protocol fee switch and help UNI holders in several ways:
It introduces a protocol-level fee mechanism, where a portion of trading fees will be used to burn UNI tokens, finally linking token value to protocol usage.
The proposal introduces a phased rollout of Uniswap protocol fees, allocating a small share of Liquidity Provided (LP) fees to the protocol, and directing Unichain sequencer fees into the UNI burn mechanism.
Get These Top Crypto Casino Offers Now!
Sponsored
Disclosure
We sometimes use affiliate links in our content, when clicking on those we might receive a commission at no extra cost to you. By using this website you agree to our terms and conditions and privacy policy.
The proposal also reduces UNI supply and creates a Uniswap Growth Budget, funding development via a Service Provider Agreement.
Most of the Uniswap Foundation’s team and initiatives will transition to Uniswap Labs, creating a single, coordinated entity focused on growth, development, and innovation.
A smaller team will remain at the Foundation to administer its remaining $100 million grants budget before winding down operations.
This proposal represents a structural shift toward a unified governance model designed to strengthen Uniswap’s long-term sustainability and competitiveness.
Several previous proposals have either been rejected or delayed, so UNI holders have welcomed the current one.
Why Is Uniswap Going Up?
The Uniswap price action shows an ascending support trend line since June 2022, encompassing the price movement throughout the entire cycle.
More recently, the price of UNI fell to a low of $2 on Oct. 10, briefly declining below the trend line before bouncing and creating a long lower wick.
Last week, UNI created a higher low (green icon) before bouncing, confirming the validity of the trendline.
As of writing, Uniswap was creating a massive bullish engulfing candlestick, attempting a break from a long-term diagonal resistance.
While a breakout would be a welcome sight for the bulls, it remains unclear whether it will occur.
Momentum indicators have not yet confirmed it, and they are at a critical threshold that can determine whether the long-term trend is bullish or not.
More specifically, the Relative Strength Index (RSI) is at 50 while the Moving Average Convergence/Divergence (MACD) is at 0.
Therefore, a Uniswap price breakout above the resistance will turn momentum indicators bullish, which in turn will affect the price prediction.
However, a rejection would do the opposite and could take UNI back to its long-term support trend line.
Uniswap’s Short-Term Prediction
The daily time frame technical analysis reiterates just how critical the current resistance is for the Uniswap price.
UNI broke out from a shorter-term diagonal resistance, briefly hitting a high of $10.29.
Uniswap’s breakout occurred after the price formed a double bottom pattern, accompanied by bullish divergences in the RSI and MACD (as shown in orange).
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
