In spite of criticism from the SEC, Uniswap plans to automate fee collection with an on-chain vote on May 31.
In a recent announcement, top DeFi exchange Uniswap said that on May 31, they would hold an on-chain vote for fee automation. The U.S. Securities and Exchange Commission (SEC) issued a Wells Notice to the corporation for alleged breaches of U.S. securities laws, but it didn’t stop them from making this choice.
According to the exchange, this new voting system will keep the DeFi protocol legitimate while reducing the burden on Uniswap governance.
The development of an automated method to distribute and collect fees in the Uniswap V3 pools is the main topic of the vote. To reduce the burden of governance without compromising the protocol’s integrity, the Uniswap Foundation proposed this method in a blog post. Users can only cast ballots if they have staked and delegated UNI tokens.
The company’s website and social media sites have also notified the public about the vote. In order to completely allow fee collection on Uniswap V3 pools, the foundation also noted that extra votes would be necessary.
Uniswap received a Wells Notice from the SEC on May 22, suggesting that the company’s present business model may be in violation of U.S. securities laws. In response, Uniswap Labs’ Chief Legal Officer, Marvin Ammori said that the company is following all applicable U.S. laws and that the SEC should not go after assets or people that are outside of its jurisdiction. Ammori said that the majority of Uniswap users are located outside of the US, accounting for over 75% of traffic and roughly 90% of trading volume.
Uniswap has also made it clear that it is prepared to fight the SEC in court if necessary. In reply to the Wells Notice, the exchange provided detailed responses to the SEC’s assertions, arguing that the legal basis is weak.
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