Uniswap community votes down protocol fees for liquidity providers

Jun 03, 2023
The fact that the community voted against the original question in the Snapshot was unexpected.
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Most of the Uniswap community rejected the proposal to charge commissions from liquidity providers (LPS) according to the protocol as a result of Thursday’s vote. Thus, more than 45% of the community voted for “no commission”, while 42% voted for charging liquidity providers 20% of the payment generated by Uniswap V3 pools. A smaller number of voters in the amount of 12% are in favor of distributing 10% of the fees, while the nominal 0.04% voted for 25%.

LPS are large market makers with millions of blocked assets that make it easier for users to trade on Uniswap and receive a reduction in commissions for each transaction. Currently, Uniswap does not charge LPS anything for using the platform.

A survey conducted earlier in December 2000 showed that users reacted positively to the introduction of changes. However, some of the community gave cautious comments about the risk of capital outflow due to a decrease in LPS profits.

In May, a GFX Labs expert shared his opinion on this topic, stating that the Uniswap platform is in an advantageous position to enable payment for the protocol and is able to prove that the protocol can bring more significant revenues.