Coin Edition -
- Uniswap Labs, the entity that owns the Uniswap platform, introduced fees on specific token pairs.
- Haseeb Qureshi hates the decision and criticizes Uniswap Labs for profiting without sharing with token holders.
- The decision is expected to generate annualized revenues of approximately $30 million.
Uniswap, a prominent decentralized exchange protocol, recently found itself at the center of a heated debate among crypto analysts. The controversy revolves around Uniswap Labs, the entity responsible for maintaining the front end of the Uniswap platform, introducing fees on trading certain token pairs.
Uniswap, an on-chain protocol, is governed by its UNI token holders. However, UNI token holders have not voted to implement fees within the protocol itself, meaning that users have not been charged fees for trading on the platform. However, Uniswap Labs, a separate entity that owns the Uniswap front end and website, decided to charge a 15 basis point fee on specific token pairs.
Haseeb Qureshi, managing partner at Dragonfly, had a strongly negative reaction to the decision expressing his discontent with a straightforward statement: “I ****ing hate this.”
Qureshi argued that Uniswap Labs is capitalizing on the UNI token’s value, effectively profiting from it, without sharing the proceeds with the token holders, who were initially the core beneficiaries. He further questioned why a token is needed for governance if fees can be introduced without token-holder consent.
Meanwhile, advocates argued that allowing companies like Uniswap Labs to monetize their front-end interfaces can create sustainable business models and promote continued development. This approach also allows developers to be compensated for their work without relying solely on token emissions.
As a result of this decision, Uniswap Labs is expected to generate annualized revenues of approximately $30 million, raising concerns about the centralization of control over revenue streams.
The post Uniswap Labs Introduces New Fees — “I ****ing Hate This,” Says Crypto Analyst appeared first on Coin Edition.