You will be able to stake your uni and earn passive income as a share of the .05% fee share. Ideally .05% of fees are converted to uni and distributed to stakers like sushi.
3 Likes
To me it seems like this is a bit of an easy choice then, so I must be missing something. The opportunity to earn a return on your investment while still being a part of something seems quite normal to me. What are the cons/risks for switching early?
1 Like
Biggest con? LP’s lose 1/6th of their lp rewards and people worry it will cause an exodus of LP’s to other protocols.
However other protocols already have a fee switch and uniswap transactions are more than all dexes combined, so even a slight reduction in direct lp rewards still makes it much more profitable to lp on uniswap over other places. Additionally whale lp’s are better than 90% likely to be uni holders since they have so much invested in the platform that it will actually be a net benefit for them.
Easy choice imo, fee switch = utility for uni for small holders via passive income, and will result in a net gain for whale LP’s because the price of uni will go up dramatically.
2 Likes
It’s a do. LP won’t go anywhere and maybe compensate LP for their impermanent losses a little bit by earn some UNI reward.
2 Likes
I concur. Of course, I’m on the small end as I said before, but I think that this is a long term investment for major gains over the next years. Most large investors that have that kind of money, I think understand that. I feel convinced that we should execute to stay competitive and show the other players why UNI is the top dog (horse). Thanks for educating me Uniswap.
You’ve sold me on this point with the whales being the only ones with a reason to hold and vote on Uni without some reward for small Uni holders. I’ve voted here [POLL] Should UNI Holders Be Rewarded? - but can see that it’s a really old poll.
What are the next steps to get this going? I’m guessing it’s something along the lines of
Draft a formal proposal > temp check > Consensus check > approach delegates & find enough votes to propose > vote
Temp Check seems to be unnecessary or at least will be traversed quickly unless we wish to clarify a set of parameters for the proposal.
Consensus check will involve getting the views of Liquidity Providers, and the larger delegates, and balancing the parameters of the proposal to not alienate important stakeholders.
2 Likes
Thanks man I’m not too privy on everything. But I think we need someone reputable and preferably flush with uni to offer a real proposal so it’s taken seriously.
I recently read Harvard blockchain delegate is preparing one, so hopefully soon.
2 Likes
few days until 15 March. Any news ?