The Uniswap community has approved two governance proposals aimed at expanding the Uniswap ecosystem. These are under the “Uniswap Unleashed” framework, which seeks to advance the growth of the Unichain Layer-2 and the Uniswap v4 protocols. The adopted measures include a new grants program, liquidity incentives, and preparation for the activation of the long-awaited fee switch.
We're thrilled to announce that last night, both UF governance proposals passed quorum.
This marks the beginning of our community's next era: one that unlocks new opportunities to build, grow and to create and capture value.
→https://t.co/h1NnLUFskL
→https://t.co/kchEqv2PDH pic.twitter.com/udvUgdA3TR— Uniswap Foundation (@UniswapFND) March 19, 2025
The Uniswap Foundation, in collaboration with web3 risk management company Gauntlet, created liquidity incentives to attract users and aid the ecosystem’s long-term development. The foundation has proposed $95.4m for the grants program and $25.1m for administration for the next two years. A separate incentive proposal includes $45 million for liquidity incentives.
“Today we are also posting a request for incentives to support the growth of Uniswap v4 and Unichain. If approved, these funds would be managed, within pre-set parameters and onchain, by Gauntlet, while having control maintained by Uniswap Governance.”
Uniswap pours millions into growth and rewards
To properly manage the funds, Gauntlet created an Aera vault for the Uniswap Foundation on Ethereum’s mainnet. The reserves reportedly hold over 7.5 million UNI tokens in the vault, which is equivalent to $52 million at the current rate.
The fee switch is another element of the governance decision that might be triggered by the current changes. This could potentially shift a fraction of some of the protocol revenues currently earned by liquidity providers to those who own UNI tokens.
The process of activating the fee switch has been a hot topic of discussion in the Uniswap community. However, that feature has not been implemented even with the existing votes. Uniswap’s governance has received over $ 1bn in annualized fees, rendering the fee shift extremely critical for participants.
Uniswap v4 and Unichain expansion
Uniswap v4, deployed in January, introduced “hooks,” enabling the developers to control specific actions within the decentralized exchange. The upgrade will enhance the ease of the Uniswap protocol for developers.
Also recently, Uniswap launched Unichain, a Layer 2 blockchain developed using the Optimism platform. In a bid to increase transaction rates and allow for more extensive use of the platform, Unichain has conducted more than 88 million tests. The network benefits and encourages the improvement of the trading process and Dapp creations.
Uniswap has also scaled up its services through partnerships. As Cryptopolitan reported, Robinhood now allows users in more than 180 countries to exchange crypto for fiat and deposit the money to their bank accounts with the help of Robinhood partners MoonPay and Transak.
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