Here’s why Frax Finance (FXS) token soared today

• Frax Finance is looking to mirror Uniswap’s proposal to allocate protocol fees to stakers
• FXS price surged to highs of $9.64 and could break above $10 if bulls hold onto gains.

After the Uniswap Foundation released a proposal seeking to distribute network fees to UNI stakers, the team at Frax Finance have outlined a similar proposal. Frax Finance founder Sam Kazemian outlined this during an interview with CoinDesk.

The Frax Finance team had earlier hinted at this on February 23 via a post on X.

Should veFXS holders vote to distribute Frax Protocol revenue back to veFXS stakers again? Frax Finance makes 8 figures of annual revenue & growing, mostly being conserved in the treasury now. Time to turn it back on? 👀 https://t.co/3Yd9oDV98A

— Frax Finance ¤⛓️¤ (@fraxfinance) February 23, 2024

FXS toke surges amid UNI-like proposal

Last week, the Uniswap (UNI) token jumped on news of the protocol’s revenue share proposal. Frax Finance’s governance token FXS is also rising after the project’s latest move. While the community rejected a proposal aimed at sharing revenue in 2022, the current outlook led by Uniswap could get the nod.

If it does, FXS holders can lock their tokens for veFXS, which would attract a share of the protocol revenue. Users can stake veFXS on Ethereum mainnet and on Fraxtal, the layer-2 protocol of Frax Finance.

FXS traded to highs near $11 on February 5. Today’s 8% spike pushed it to highs of $9.64, levels seen on February 20.

With the broader DeFi ecosystem witnessing a bump in prices amid UNI token’s surge last week, further gains for FXS could push it back above $10.

Above this, FXS could target $12, the March 2023 resistance level. Bulls could then eye the all-time high of $42.80 hit in January 2022. On the flipside, Frax Finance price has primary support at $8 and potentially $7.