Ability to toggle fees is next week, do we do it?

Hi,
I haven’t seen much discussion on a proposal to actually toggle the fee switch. The lockup period is coming to an end. Has the community thought through a proposal to actually switch on the fees? There are obvious reasons for a no and a yes.
Yes - UNI becomes an income-generating token and will appreciate in price
No - Incentives becomes misalign between LPs and Token holders.
Potential solution - add back liquidity mining for UNI to certain pools (at a much lower rate)
This may incentivize LP to stay so they can earn an appreciating asset.
Thoughts?

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Hey Richardxlin

As a smooth-brained newcomer, I’d be happy to vote for UNI to become an income-generating token. I don’t really follow along with the reasons not to, although I understand that incentivizing LPs in the market to give liquidity to Uniswap is an important factor to UNIs long-term value.

I’ve wondered if there would be a way to programmatically alternate between incentives that keep us competitive when the situation calls for it and paying “dividends” (hopefully this is a suitable name for it) to token holders when competition in the DEX marketplace is less threatening to Uniswap’s market share. I’d guess this is probably a while away considering there’d need to be reliable means of feeding market data into the contracts + a carefully considered formula for evaluating the position of Uniswap in the marketplace and emerging threats.

That kinda brings me to a point that’s important to me as someone who only holds 400 UNI, but probably somewhat insignificant to others. How do we laypeople correctly evaluate how important the right incentivizing instruments are now, how important they will be in the future, and when exactly we should vote to apply them at the short-term expense of token-holders?
Are there monthly reports on the state of the market we can read somewhere, are there easy to find articles that explain the antagonistic forces at play, and the performance indicators that we need to pay attention to? If we don’t have this knowledge how do we delegate or vote in our own long-term interests? I don’t think anyone would suggest we delegate blindly.

I haven’t personally come across any sort of curated knowledge base that explains all the factors at play, I have seen posts dotted around this forum that references dune analytics dashboards/visualisations that help clarify what’s going on in the marketplace and on the Uniswap platform, but I’m wholly ignorant of all the instruments being proposed and need help to interpret what’s going on. I’m not the kind of person to beg people to explain it to me on a discord room, I’m pretty averse to doing that in fact, but without some form of wikisite that can explain all the jargon and proposed strategies, I feel pretty lost.

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Yes .I think UNI will appreciate in price

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Lets do it. Its time to unleash the beast

:zombie:

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Move over to the Binance Smart Chain network -
Your digging a hole with an asset then when its used eats its self.

You’ will only end up with whales - It is an impossibility too sustain growth unfortunately.

You also are running out of time very fast.

You need to hear that from a person that does not have much , as well as a person that has a lot.

Social media and market cap will thrive in an ecosystem that promotes low gas,
I wish you luck. I too have funds that i cannot claim anymore due to the gas,
When I tried for 2 months already at cheaper prices it failed.

Good luck, but im gone

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This isn’t the way to look at things. Uniswap is amazing precisely because it isn’t controlled by a centralised authority and is therefore censorship resistant, if your using Binance’s supervised chain (BSC) you may as well just use Binance itself for trading. Yes the fees are a growing pain on Ethereum but Uniswap v3 may fix this and eventually Layer 2 + Rollups should eliminate these concerns entirely in time.

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Good luck, I’m staying. See you back in a while :wave:

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Agree. Ill use exchanges until gas gets under control or just use large purchases instead of DCA but decentralized open sourced exchanges are the way to go. More decentralization not less. The scalability problem will be solved and there is many ways to do it. What really sucks is US law about exchanges they literally do not want you to make money and if you do they was 35%

Bye man , have fun with centralization

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I think that UNI fees switch activation could be huge for Uniswap ecosystem

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Good luck, I’m staying. See you back in a while

Yes why not give it a try

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I dont understand the lack of discussion on this issue. Turning on the fee switch can occur on March 15th. The entire process from initial snapshot vote to official vote + 2 day time delay to execute the code takes roughly 16 days. This should be THE topic of discussion right now and the official pre-proposal needs to begin. Its very odd.

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Just wanted to throw my hat in the ring and say that fee switch should absolutely be turned on.

however, it may be prudent to first have a proposal to reduce quorum.

Reasoning: If the fee switch ends up affecting volume (due to liquiduity leaving), governance needs to be able to quickly make changes such as LM rewards.

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I disagree. I dont see any whale LP’s leaving because they are likely massive uni holders as well. So not only will they essntially make back that .005%, but the price of UNI will go multiples higher if small fish can purchase uni, stake it, and earn passive income. These whales know the incredible impact the fee switch will have on price. Further, while the .005% could pose an issue to a select few, the transaction volume of Uniswap compared to other dexes is miles ahead. So if they were going to leave for a farming chance like on sushiswap or bancor, they would have done so already so I dont see them leaving when other swaps also have a fee for stakers, yet dont have the volume to offset it like uniswap does.

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Cant we just vote to reward liquidity providers in UNI as well as fees, problem solved.

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It is shocking to say the least there isnt a major buzz and involvement from uni stake holders to at least discuss the fee switch when we are 3.5 weeks from being able to toggle it on. It makes stakeholders look inept and apathetic, and creates 0 reason to hold the UNI token unless you are a whale. What is someone going to do with 100 uni? Vote on proposals when their vote is meaningless? What benefit do they get?

If the fee switched isnt flipped, the UNI token becomes worthless outside of whales. Dont mess this up, fee switch must go live the first day it can.

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I agree with UniswapFeeSwitch I envision Uniswap as the future NYSE of the web. Common people have an opportunity to earn income off a small percentage of every transaction. Uni becomes a bastion for smart money regardless of speculation on any individual token.

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We should absolutely turn the switch on. This is no brainer. You think the current price of UNI is only for governance? No! Income is the way to support the sustainable valuation and future growth of the protocol.

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I am a new and small holder <100 token right now, still planning to buy more over time versus investing in traditional markets which I feel are rigged against your average investor (and more). If fee switch happens at the earliest, how does that impact me from an incentive perspective? I make an average income, and doubt I will ever get to “whale” status. Can someone explain what’s in it for holders/investors like us?