The Uniswap Foundation has delayed the governance vote on a proposal to activate a new fee mechanism for the protocol. This proposal intended to switch fees for Uniswap, offering rewards to UNI token holders who stake and delegate their tokens. Following this development, the UNI price reacted negatively, dropping by 9% to reach $10.17 across major exchanges.

Uniswap had introduced the fee switch proposal last week, scheduling the on-chain deployment and vote for Friday. However, due to a stakeholder-raised issue, the Foundation announced a postponement, citing the need for additional diligence. The Foundation emphasized the need for caution and apologized for the unexpected delay. Future timeframes will be communicated to the community once more certainty is achieved.

The UNI token experienced highs of $11.04 before the announcement led to a decline in its value. Since its peak on May 26, the UNI price has trended lower, with indications suggesting the possibility of further declines towards the $10 mark. Currently trading around $10.26, a breach below $10 could drive the price to support levels near $8.00. The price chart depicts fluctuations between $6.80 and $8.22 before a breakout on May 20.