Uniswap token drops 7% amid delay on fee switch vote

The Uniswap Foundation on Friday delayed a highly anticipated vote that was expected to take the world’s largest decentralised exchange one step closer to activating its so-called “fee switch.”

The Uniswap token, UNI, dropped more than 2% after the foundation said it would delay the vote, continuing a decline that began early Friday. UNI was down more than 7% from its intraday peak Friday at $11.04.

“Over the last week, a stakeholder raised a new issue relating to this work that requires additional diligence on our end to fully vet,” Erin Koen, the foundation’s governance lead, wrote Friday in the Uniswap DAO governance forum.

“We will keep the community apprised of any material changes and will update you all once we feel more certain about future time frames,” he said.

Koen didn’t name the stakeholder or the issue they raised and didn’t immediately respond to DL News’ request for comment.

The Uniswap DAO, the cooperative that governs Uniswap, has debated activating the fee switch for years.

Earlier proposals have failed to advance, largely because offears they would run afoul of US securities laws.

The latest proposal was authored by the Uniswap Foundation, a nonprofit tasked with supporting the Uniswap exchange. The fee switch would divert a portion of the exchange’s revenue to certain UNI investors.

It passed a non-binding “temperature check” vote earlier this year. A binding, blockchain-based vote was set to begin Friday.

Dan Robinson, a general partner at crypto venture-capital firm Paradigm, accused the Uniswap Foundation of caving to pressure from another, unnamed venture-capital firm.

“It’s disappointing to see a large VC try to bully the token governance process and delay community proposals at the last minute in order to advance their own pet projects,” he wrote on X.

Robinson didn’t elaborate in his post and didn’t immediately return DL News’ request for comment.

Uniswap Foundation CEO Devin Walsh declined to comment when contacted by DL News.

Aleks Gilbert is a DeFi Correspondent at DL News. Got a tip? Email him at aleks@dlnews.com.