- Uniswap released a governance proposal to upgrade its governance system, which aims to incentivize greater UNI holder participation. This sparked a 50%+ price surge for UNI.
- The proposal rewards UNI holders for staking and delegating tokens to increase community involvement in governance. The market reacted quickly, sending UNI price up over 50%.
- UNI hit $10.93 after the announcement. Further upside appears likely, with targets at $12 and $12.50. Support is around $7.90 and $6 where major moving averages converge.
Uniswap, one of the largest decentralized exchanges (DEXs), recently released details of a new governance proposal to upgrade and strengthen its governance system. The market reacted swiftly, sending the UNI token price up over 50% and liquidating millions in short positions.
The Proposed Upgrades
On February 24th, Uniswap published a governance proposal outlining several technical upgrades to its governance system. The main goal is to incentivize more active and thoughtful participation in governance by UNI token holders.
If approved, the new mechanism would reward UNI holders who actively stake and delegate their tokens. This aims to increase community involvement in governance decisions.
Market Reaction
The market responded quickly to the proposal. UNI price broke out of its consolidation, surging over 50% in a matter of hours.
Over $3 million in UNI tokens were bought just six hours before the proposal went public, indicating some traders likely had early access to the information.
The surge in price liquidated over $307 million in short positions on UNI. Open interest on UNI also exploded, nearing $1.75 billion across major exchanges.
Price Outlook
UNI hit $10.93 following the announcement. Further upside appears likely, with the RSI in bullish territory. The first target is the psychological $12 level, then the March high around $12.50.
Support appears around $7.90, near the 50% Fib level. Below that, UNI may find buying interest around $6 where the major moving averages converge.
Overall, the governance proposal has re-invigorated interest in UNI. With the focus shifting to greater community involvement, UNI looks poised for further gains.
