The proteasome executes most of the controlled protein degradation in the cell. It has important role in regulation of protein homeostasis and dysfunctions in proteasomal degradation have been linked to many severe disorders, including several neurodegenerative diseases and cancers. Although the importance of the proteasome for cellular viability is well recognized, it is still not known how proteasome activity is regulated in a multicellular organism. Insulin/IGF-1 signaling (IIS) is a well-characterized signaling pathway that regulates e.g. protein homeostasis and lifespan in many organisms. Here we have studied if IIS regulates proteasome activity by using in vitro assays, our previously established in vivo photoconvertible UPS activity reporter system as well as our novel in vivo polyubiquitin reporter. Our results show that reduced IIS enhances proteasome activity in a DAF-16 dependent manner. Furthermore, we demonstrate that DAF-16 represses expression of the proteasome-associated deubiquitinating enzyme
ubh-4, which we propose to function as a tissue-specific proteasome inhibitor and a modulator of lifespan. The role of UBH-4 appears to be well-conserved, as downregulation of its mammalian ortholog, UCHL-5, increases proteasome activity and degradation of proteotoxic proteins in mammalian cells. Altogether, our results establish a novel molecular mechanism linking IIS to proteasome activity and add one more branch to IIS mediated maintenance of cellular protein homeostasis.