Currently, UNI tokens are a governance token, and only a governance token, as such owning uni gives no utility of any sort in the day to day life. As such, liquidity miners are only incentivized to mine uni for a quick profit.
Therefore, I propose the following. Firstly, I propose creating a pool of a part of all transactions handled by uniswap. This is to create a monetary incentive to stake and hold UNI tokens on it’s own. This pool can be an additional fee on top of the 0.35% dedicated to liquidity providers (due to the fact that the volatility on cryptos is big, a small additional percentage would not do much harm.) Alternatively, or additionally this can be taken from UNI miners.
Lastly, I would propose utilizing this pool and offering a stake incentive on the UNI token, these staked tokens should also be usable in the governance, however the staking process should incentivize keeping the UNI token for a long duration of time. Therefore the allocation of the pool of dividends pays out depending on the amount of time you have been staking and the amount of your stake.
- Take 0.1% From Liquidity Providers
- Add an extra 0.1% fee to the protocol
- Fees from UNI Liquidity miners
- Fees from UNI Liquidity miners + Take From Liquidity Providers
- Fees from UNI Liquidity miners + Add extra fee to protocol
- Do Everything