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Uniswap Rolls Out Poll To Decide On Fee Collection Gets Majority Rejection

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  • 45% of voters rejected the idea of levying fees; they also got divided into two fee plans

On June 1, one of the leading decentralized exchanges Uniswap rolled out a poll, which asked crypto users if they are ready to pay for liquidity providers or not. The results of the survey came out soon and it disheartened the Uniswap team a bit. 

Around 45% participants of in the poll opposed the charging of a fee. The voters were actually given multiple options and the outcomes were rather interesting. Around 12% of people supported 1/10 fee across all the pools while 42% rooted for ⅕ fee across all Uniswap v3 pools. 

And while the number of people who supported fees in different quantum was greater than those who turned it down, it was still no match to “no fee”. A standalone category that garnered 45% which was greater than the collective 55% of three different categories. 

The platform made a whopping number of 56 million UNI tokens worth ($280 million) available for the voting process. According to the firm, the results will not affect the forthcoming polls on the same or some other proposal. The page suggests that this data will be used to analyze the sentiment about the fee on LP. However, a large chunk of people saying no to fees seems to be a significant factor. 

Should Uniswap levy a fee on Uniswap at all

In its initial proposal, GFX Labs brought up the idea of fees as a means to generate revenue for Uniswap. It also had the purpose of making liquidity providers professionals who earned money for their services rather than depending on rebates. 

Though the idea of the fee was put forward by GFX, many of its own members pointed out challenges with the structure. They highlighted that the induction of fees will bring legal and regulatory implications along with them. The proposed draft could even attract the implication of income taxes. 

Furthermore, the proposal does talks about the imposition of fees only on the liquidity providers, not on all the Uniswap users. And finally, the decision cannot be made just by the internal team. The users holding a major stake in the UNI token base will have a say in this. So it would be interesting to see if the idea of the fee would get materialized or not.

Uniswap is not the only platform that has come with a poll for something, a similar practice is being followed by Binance’s BNB Chain and Coinbase’s Base Network.  

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