Should the fee switch be flipped on at the earliest possible time? (March 15th)
The entire governance process from pre-proposal to formal onchain voting and execution of the code takes roughly 16 days not factoring additional time for debate to set specifics. So it is time to discuss the fee switch. Uniswap dwarfs the transaction volume of all the other dex’s on Eth combined and LP’s, while not earning UNI farming, make a killing from the transaction fees compared to lp’ing anywhere else.
My contention is a 5bps reduction will not have a material impact on people, and especially whales, lp’ing in uniswap due the offset by the high transaction fees generated. Furthermore, large lp’s are likely to also be large uniswap stake holders and will also benefit.
Therefore I believe not only must we flip the fee switch, but the mechanism for rewarding uni stakers should be a buyback and distribution of uni tokens just like the sushiswap model. Burns simply do not work in practice as they do on paper for the material impact on the price of the token.
Thoughts? And also why the lack of active discussion on such a monumental topic that could turn staking Uni tokens into a source of income for people for decades to come.