Uniswap Proposes Expanding Protocol Fees to 8 Additional Chains
What Is Uniswap Proposing?
Uniswap governance is voting on a proposal that would activate protocol fees on all remaining v3 pools on Ethereum mainnet and extend fee collection to eight additional chains. The temperature check is live on Snapshot and is scheduled to conclude on Feb. 23.
The proposal would switch on protocol fees across v2 and v3 deployments on Arbitrum, Base, Celo, OP Mainnet, Soneium, X Layer, Worldchain, and Zora. It also introduces a tier-based fee adapter designed to automatically apply protocol fees to all v3 pools according to their liquidity provider fee tier.
If approved through governance, the change would remove the current model in which fees apply only to a governance-managed subset of pools. Instead, every v3 pool would be subject to protocol fees, broadening how the decentralized exchange collects revenue.
How Would the Fee and Burn System Work?
The proposal extends the post-UNIfication fee-and-burn framework introduced last year. Under that structure, protocol revenue is routed into smart contracts before being converted into UNI and permanently removed from circulation.
On Layer 2 networks, collected fees would first flow into chain-specific “TokenJar” contracts. Those funds would then be bridged back to Ethereum mainnet and burned. On Ethereum itself, a dedicated “Firepit” contract would handle direct burns.
Because of governance contract limits, two separate onchain proposals would be submitted in parallel if the Snapshot vote passes, dividing the fee expansion across networks.
The governance post described the initial rollout in December as stable. “This rollout has gone well, with market-adjusted TVL up on Ethereum mainnet since December,” the proposal stated. “The burn system is working as expected, permissionlessly converting fees in many different tokens into UNI burns.”
What Changed Under UNIfication?
The proposal is the first to move under the streamlined governance process introduced through “UNIfication,” an overhaul passed late last year. That framework allows fee parameter updates to skip the traditional request-for-comment stage and proceed directly to a five-day Snapshot vote followed by an onchain decision.
The new process shortens the timeline for fee adjustments while retaining timelocked execution. It also formalized the routing of protocol revenue toward a burn mechanism, aligning fee activation with UNI supply reduction.
Uniswap Labs founder Hayden Adams said the first phase of fee activation had been closely monitored and was operating efficiently. The next phase, he wrote, would extend fees to the remaining v3 pools and additional chains.
Investor Takeaway
Why Expand Fees Now?
The vote comes as Uniswap continues to adjust both its governance and product stack. Earlier this year, the protocol began rolling out “Continuous Clearing Auctions” on its main frontend, changing how token launches are handled. It has also expanded into institutional-facing activity, including enabling direct onchain trading of BlackRock’s tokenized Treasury fund BUIDL in collaboration with Securitize.
Uniswap remains one of the largest decentralized exchanges by trading volume and fee generation. Extending protocol fees across all v3 pools and additional chains would increase the share of activity routed through its revenue framework at a time when multi-chain liquidity is fragmented across networks.
Investor Takeaway
The Snapshot vote will determine whether the proposal advances to onchain execution. If approved, Uniswap’s fee architecture would become broader and more automated, with every v3 pool contributing to the protocol’s burn-driven revenue model.
