UNI Soars as Uniswap Foundation’s DUNI Proposal Teases Game-Changing Fee Switch Activation
DeFi's sleeping giant wakes up swinging. UNI token holders just got their first real taste of revenue potential as the Uniswap Foundation drops its long-awaited DUNI governance proposal—with the fee switch mechanism front and center.
The golden goose scenario
After years of theoretical value accrual, the protocol's native token might finally start capturing real yield. The proposal outlines a phased rollout of fee distribution, starting with Ethereum mainnet pools before expanding to L2s. Traders keep getting rekt by impermanent loss? Now they'll at least get a cut of the action.
Wall Street's worst nightmare
While traditional finance still argues about ETF fee structures, DeFi's OG DEX is quietly flipping the script. The proposal cleverly sidesteps regulatory landmines by framing distributions as "protocol incentives" rather than securities dividends—a masterclass in crypto-lawyerese.
Closing thought: Nothing gets degens more excited than the prospect of free money—except maybe the chance to finally say "I told you so" to every skeptic who called UNI a governance token with no cash flow. The fee switch isn't just getting unlocked—it's getting weaponized.
Uniswap Foundation sets eyes on DUNI DAO structure
The Uniswap Foundation unveiled plans to establish a new legal entity for its governance organization called DUNI, modeled on Wyoming's DUNA framework.
The DUNA Act establishes a legal framework that allows DAOs to operate as recognized nonprofit entities, offering them legal status and liability protections.
"Congrats to Uniswap for setting down roots in Wyoming! Our state's laws for digital assets are best-in-class, and I commend the Wyoming Legislature for its foresight in creating decentralized nonprofit associations," said Wyoming Senator and crypto supporter Cynthia Lummis in an X post on Monday.
DUNI WOULD place Uniswap DAO's operations within a formal legal structure, allowing it to work with service providers, sign contracts, and meet regulatory requirements, all while maintaining decentralization.
"This new legal entity, called 'DUNI', will be purpose-built to preserve Uniswap's decentralized governance structure while enabling engagement with the offchain world," Uniswap Foundation wrote in the proposal.
The Foundation noted that it has been seeking to address the lack of off-chain infrastructure and legal protections for Uniswap's governance.
DUNI addresses some of these lapses, including allowing DAOs to adjust protocol fees, which have been a difficulty for years due to regulatory concerns.
Uniswap Foundation previously stated in its "Uniswap Unleashed" proposal earlier that it plans to develop and support the UVN validator and staker network. If DUNI is adopted, it would introduce a governance proposal for delegators to earn protocol revenue.
The proposal also allocates $16.5 million in UNI to cover past tax liabilities and establish a "legal defense budget." The Foundation estimates its IRS settlement for taxes of previous years will be under $10 million if the proposal is executed.
It also intends to use $75,000 in UNI as payment to Cowrie for its services as a compliance administrator.
The MOVE comes as US regulatory agencies are softening the environment around crypto, with Securities & Exchange Commission (SEC) Chair Paul Atkins recently announcing "Project Crypto."
Uniswap's v2 Developer docs were also featured in the WHITE House's crypto report, noting the current government's interests in advancing DeFi.
UNI saw a 2% gain over the past 24 hours following the announcement.
