Uniswap Foundation discloses $41M balance sheet ahead of crucial fee vote

As the Uniswap community prepares to vote on a proposal that would introduce a new fee distribution plan, the Uniswap Foundation has shared its balance sheet, revealing $41.41 million in fiat and stablecoins, as well as 730,000 UNI tokens.

The upcoming vote, which is expected to pass based on prior snapshot polls, would transfer control of the mainnet UniswapV3Factory to a new V3FactoryOwner contract. This change is a prerequisite for activating the new fee distribution plan, which will be the subject of a second vote that has not yet been scheduled.

The proposed fee distribution plan is a critical development for the Uniswap ecosystem, as it could potentially provide a new revenue stream for the protocol and its stakeholders. The exact details of the plan have not been disclosed, but it is expected to incentivize liquidity providers and other key participants in the Uniswap network.

The Uniswap Foundation’s balance sheet revelation comes amidst looming threats from the US Securities and Exchange Commission (SEC). The SEC recently issued a Wells notice to the Foundation, indicating its intention to recommend enforcement action against the organization in the future.

The SEC’s Wells Notice specifically targets Uniswap’s UNI and LP tokens, arguing that they constitute investment contracts and alleging violations of securities laws. However, Uniswap Labs, the company behind the Uniswap protocol, disputes these claims , asserting that the SEC lacks jurisdiction over the matter. Uniswap Labs contends that LP tokens are merely bookkeeping devices and do not, as such, meet the criteria for securities.

Uniswap also argues that it does not fit the SEC’s own definition of an exchange, which could potentially shield the protocol from regulatory action. The outcome of this dispute will likely have significant implications for the broader decentralized finance (DeFi) ecosystem, as many other protocols rely on similar token models and decentralized exchange mechanisms.

The Uniswap Foundation’s balance sheet disclosure comes at a critical juncture for the protocol, as the community prepares to vote on a new fee distribution plan and faces potential regulatory action from the SEC. The proposed fee distribution plan could provide a significant boost to the Uniswap ecosystem, incentivizing participation and potentially driving further growth and adoption.