- Uniswap governance is voting to activate a fee switch on eight layer 2 blockchains, which could more than double revenue for UNI tokenholders.
- The fee switch redirects a portion of trading fees to a pool where holders can claim them by burning their UNI tokens.
- Despite a 59% price drop since the initial Ethereum fee switch proposal, UNI has gained 9% over the past week, outperforming major cryptocurrencies.
- The “UNIfication” governance package in November successfully implemented fees on Ethereum and burned nearly 100 million UNI tokens.
Uniswap tokenholders began voting on Thursday to activate a lucrative fee switch across eight new blockchains, a move poised to significantly boost investor revenue. This governance proposal targets layer 2 networks including Base, Arbitrum, and OP Mainnet and follows a successful initial rollout.
The fee mechanism directs at least one-sixth of protocol fees into a token jar, claimable by investors who burn an equivalent value of UNI. Consequently, this reduces the token’s supply while generating income, with the switch on Ethereum already having generated $3.3 million.
Expanding the switch would likely more than double that revenue stream. Base has overtaken Ethereum as the top fee-generating chain for Uniswap in 2026, with traders paying $55 million in fees there since January.
Founder Hayden Adams called the initial Ethereum rollout a success, noting growth in user deposits. “Rollout went very well, with market adjusted [user deposits] up and burn working efficiently,” he wrote on X.
However, the broader “UNIfication” proposal in November coincided with a brutal market downturn. The UNI token has plummeted 59% to $3.74 since that proposal was introduced.
Meanwhile, the token has shown recent strength, rising 9% over the past week as Bitcoin and Ethereum fell. The expansion proposal passed its initial vote unanimously, with a final pair of votes ending on March 4.
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