# \[Discussion\] Uniswap Liquidity Incentive Plan

**URL:** <https://gov.uniswap.org/t/discussion-uniswap-liquidity-incentive-plan/8590>\
**Category:** Requests for Comment\
**Created:** [November 16, 2020, 6:23pm UTC](https://gov.uniswap.org/t/discussion-uniswap-liquidity-incentive-plan/8590 "2020-11-16T18:23:34Z")\
**Posts on this page:** 1\
**Showing post:** 4

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**Author:** ![govro](https://avatars.discourse-cdn.com/v4/letter/g/aca169/32.png) [@govro](https://gov.uniswap.org/u/govro)\
**Post date:** [November 16, 2020, 7:59pm UTC](https://gov.uniswap.org/t/discussion-uniswap-liquidity-incentive-plan/8590/4 "2020-11-16T19:59:26Z")

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These UNI rewards actually created 2 net negative side effects 1) volume to Liquidity ratio have become very small compared to historical ratio for all these 4 pools making actually the overall fees collected (uni token + 0.3% fees) by LPS actually smaller than historical fees.  
2) These rewards actually dilutes the token holders without providing benefits to LPs. The only advantage is that UNI can claim higher locked Total value but without any increase in volumes which is the real economic value of UNIswap.

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