Anything that You Need to Know about The Fee Switch Uniswap! People in the community have been buzzing about the fee switch. Many people gave their opinions on how it would work. Predictions also have been provided on social media.
The Fee Switch
Fee switch has a lot of relationship with the token, UNI. Currently, it costs 0.3% in Uniswap to trade tokens. All of the amounts would go to LPs or liquidity providers. So, if the fee switch is applied, 0.25% would go to LPs, and 0.05% would go to token holders. The fee could apply via a governance vote. It is exciting news for UNI holders as they would be able to gain more money. On the other hand, LPs would not be too happy that their earnings have lowered. It also would make them drop from Uniswap.
The Debate in the Community
Leighton Cusack, CEO of PoolTogether, said, “It should be turned on in a limited testing capacity. Doing this now will 1) provide us with real data and 2) provide the community more time to consider how assets accrued via this mechanism should be used.”
People in the community also have given their views on the matter. One account said, “So the situation begs the question: Why has The Fee Switch not been activated or not even scheduled to be activated?”
There's an elephant in the @Uniswap room and it's called The Fee Switch.
The elephant exists to remind people that a business should generate revenue or at least have a convincing plan to do so in the future.
Let's take a deeper look at what's going on:
— laurikainen.eth (@teemulau) July 18, 2022
Another account stated, “If UNI diverts fees to holders, LPs will leave.”
If $UNI diverts fees to holders, LPs will leave.
Also, it becomes a security.
If it becomes a registered security, some users will leave.
If you add fees on top, many users will leave.
They're in a bind; they should have captured value from the start.https://t.co/L2vesfY0aD
— Nate (@EatSleepCrypto) July 8, 2022
The fee switch is still trending in the community as people keep dropping their views on social media. Many are looking forward to seeing the updates.