Uniswap Jumps 8% as Community Greenlights $165M Funding and Fee Switch Activation

Uniswap’s native token, UNI, shot up 8% Thursday after community members approved a long-awaited governance shift that could change how revenue flows within the platform. With price pushing towards $7 and trading volumes surging, investors are reacting to more than just market noise — real change is coming to the protocol.

The key catalyst? A newly approved $165 million funding plan and the first major step toward activating the controversial “fee switch” mechanism.

$165 Million Vote Passes, Backed by Majority

The Uniswap Foundation’s new funding proposal wasn’t just another vote on community spending — it was a strategic shift in how the protocol plans to support its own future.

The two-year plan allocates:

• $95.4 million to ecosystem grants aimed at expanding projects building on Uniswap
• $25.1 million to cover operational costs
• $45 million to fuel liquidity incentives

That’s a big chunk of change. But more importantly, it positions the Foundation to directly support innovation across Uniswap’s expanding Layer 2 network and the incoming version 4 upgrade. For those watching closely, this marks a clear pivot toward a more structured development cycle.

A notable change buried in the fine print? Grant disbursements will now happen after fee conversion, which means protocol revenue could soon go straight to UNI holders — a shift away from exclusively rewarding liquidity providers.

Fee Switch: A Ticking Time Bomb or Turning Point?

This is the one that’s been brewing for years. The “fee switch,” buried in Uniswap’s code since the early days, lets governance decide whether some of the trading fees — currently going 100% to liquidity providers — should instead be shared with UNI holders.

Now, the community has taken the first real step toward flipping that switch.

It’s not on yet. But the approvals open the door to further proposals that would begin testing revenue redirection, likely on Layer 2 first before any mainnet changes. That’s a huge move — potentially diverting a piece of Uniswap’s $1 billion annualized fee revenue.

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If successful, the mechanism could turn UNI into a yield-bearing token — not just a governance chip.

UNI Price Reacts: Breakout or False Alarm?

The price movement hasn’t gone unnoticed. UNI surged to $7 earlier today, up more than 8%, and as of writing sits around $6.87. It’s not just spot buying either — derivatives activity is booming.

Futures open interest has jumped 17% to $192 million, per CoinGlass. Meanwhile, trading volumes on centralized exchanges hit $297 million in 24 hours, up 170%.

Technical traders are now keeping a close eye on one chart pattern in particular. According to popular analyst World of Charts, UNI has been forming a falling wedge — a bullish reversal pattern. If the breakout is real, he suggests we could see the token push back toward $20.

Now, $20 might feel like a moonshot. But momentum — both technical and fundamental — seems to be aligning.

What’s Different This Time?

This isn’t the first time Uniswap governance has teased big changes. But this time feels a bit more… real. Here’s why:

• The funding is locked in — not hypothetical.
• Fee switch proposals have passed, not just been discussed.
• The Uniswap Foundation is actively laying out timelines.
• The broader DeFi market has been slowly warming up again.

And then there’s the regulatory cloud. Just last month, the SEC dropped its investigation into Uniswap Labs, lifting a major legal weight off the project’s shoulders. That alone may have boosted confidence that the protocol can start evolving again, without fear of regulatory whiplash.

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This alignment — governance, funding, and legal clarity — could be what finally unlocks Uniswap’s next phase.

What’s Next for Uniswap and UNI?

There’s a lot on the roadmap. Some of it is technical. Some of it is economic. And some of it is plain old community politics. But here’s a rough breakdown of what to watch:

Nothing’s guaranteed, of course. Crypto moves fast, and DeFi is still a volatile place.

But this week’s developments — funding approvals, fee discussions, price action — all point in one direction: Uniswap is gearing up for a comeback.

Even the naysayers are watching a little more closely now.