Uniswap’s native asset UNI tumbled by about 9% on Friday after the decentralized exchange (DEX) announced that it had decided to punt on an important protocol upgrade.
The DEX had planned on initiating an on-chain vote on Friday to implement a proposal that would have enabled a fee mechanism to reward UNI token holders who have staked and delegated their tokens.
The upgrade aimed to reduce the burden on Uniswap Governance and to maintain the protocol’s “credible neutrality.”
In the past week, however, a stakeholder raised “a new issue relating to this work that requires additional diligence,” according to the Uniswap Foundation.
Explains the organization,
“Due to the immutable nature and sensitivity of our proposed upgrade, we have made the difficult decision to postpone posting this vote. This was unexpected, and we apologize for the postponement. We will keep the community apprised of any material changes and will update you all once we feel more certain about future timeframes.”
Uniswap is the top DEX in terms of 24-hour trading volume and monthly visits, according to CoinGecko.
Following the news, UNI dropped from $11.04 to $9.86. The altcoin is hovering close to its 24-hour lows and is trading at $9.93 at time of writing.
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Follow us on X, Facebook and Telegram
Generated Image: Midjourney
Read the full article here