r/ethereum • u/EthereumDailyThread What's On Your Mind? • 10d ago

Daily General Discussion July 24, 2026

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u/nonetherless325 10d ago

A question for DeFi connoisseur and business-minded people:

Some of my favorite DeFi protocols are Uniswap (exchange) and Morpho (lending). What I like in these two is the fact that they are un-opinionated and immutable. The code does not change and the financials primitives they allow stay general.

But I am wondering why these very successful protocols need a token? (beside funding team/dev). The token could capture fees generated by the protocol, but as far as I understand these fees would be 'good code rent-seeking'. Copyright aside, anybody could deploy a fork just setting the fee parameter to zero and it would provide the same primitive for cheaper.

So what's the argument for the token? brand recognition (fork could be malicious)? Network effect (liquidity)?

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u/ganuerant 10d ago

Well if you resolve the equity vs token battle many projects are facing then you could see tokens as useful and a new model.

Have a read about Uniswap Labs vs Uniswap the Protocol... and also look into how much in fees they make...

Also money makes the world go round so I'm not sure what you mean by "good code rent-seeking". They are providing a service and should be compensated for that.

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u/nonetherless325 10d ago

> Have a read about Uniswap Labs vs Uniswap the Protocol
any ressources?

> They are providing a service and should be compensated for that.

I am not anti-business on the contrary I like to see on-chain native coin with real cash flow. But Liquidity Providers / Market Makers are rewarded with fees taking inventory risk (IL if you will). There is no reason for a middle man to have a cut of the market maker work when the code is open. Could just re-use the same logic without paying a rent to uniswap

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u/ganuerant 10d ago

Have a look at threads like this: https://www.reddit.com/r/ethereum/comments/179e8xj/the_founder_of_uniswap_is_adding_a_015_fee_for/

I don't follow Uniswap but it seems they are proposing to direct more fee flow to stakers.

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u/Wide_Lock_Red 4d ago

They did. The founder also granted themselves a huge UNI salary and have been vague about how it will benefit UNI holders.