Uniswap releases assets prior to voting on its fee mechanism.

The Uniswap Foundation disclosed that it held $41.41 million in fiat and stablecoins and 730,000 UNI tokens as of the end of the first quarter.

According to the publication, the foundation pledged $4.34 million in new grants and disbursed $2.79 million in previously committed grants during this period.

Fiat cash and stables are reserved for grant payments and operational activities, while UNI tokens are reserved for employee token rewards.

The Uniswap Foundation also announced that an on-chain vote on the proposal to establish a new fee mechanism will take place until May 31. According to the foundation, this proposal outlines important steps toward implementing autonomous fee collection and distribution in Uniswap v3 pools.

If the proposal is approved, control of the mainnet UniswapV3Factory will be transferred to a new specially designed V3FactoryOwner contract, marking a milestone in Uniswap’s decentralized governance. However, voting will not activate the fee, which will be addressed in a future proposal.

Uniswap Foundation stated that free conversion will be implemented despite the notice from the US Securities and Exchange Commission (SEC) Wells on DeFi protocols. The notice issued in April alleged that the company violated securities laws by operating as an unregistered stock exchange and broker-dealer.

Uniswap Labs argued that the SEC does not have jurisdiction to regulate decentralized protocols under their current legal classification.

The company’s response is timely as the U.S. House of Representatives prepares to vote on the 21st Century Financial Innovation and Technology Act, legislation that could change the way the SEC and Commodity Futures Trading Commission (CFTC) regulate cryptocurrencies.

Related: Uniswap (UNI) has hit a two-year high as the deadline for its fee-sharing offer approaches.

The SEC has been investigating Uniswap Labs, the primary developer of Uniswap, since 2021. Decentralized exchanges (DEXs) have previously delisted several tokens from their platforms, citing increasing regulatory pressure.

Uniswap’s fee revenues have always been allocated entirely to liquidity providers (LPs), who are compensated for supplying assets to the platform, trading activity, and supporting market liquidity.

However, the new proposal will share protocol fees between UNI token holders who stake or delegate their tokens, creating an incentive structure that rewards active participation within the Uniswap ecosystem and encourages meaningful contributions.

Last February, the Uniswap Foundation put forward a proposal to introduce a fee compensation system aimed at improving community participation and decision-making processes by encouraging UNI token holders to participate more actively in governance decisions.

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