Uniswap proposes lower LP incentives and activates protocol fees for v4 pools

Uniswap announced a governance proposal to reduce liquidity‑provider fee incentives by up to 33% in its V4 model, shifting focus toward lower trading costs and tighter spreads. The protocol, with $3.02 billion in TVL and monthly volume near $36 billion, hopes the change will boost execution efficiency while maintaining market leadership.

Separately, Uniswap Labs opened a Snapshot vote on July 7 to enable protocol fees on selected V4 pools across 11 blockchains, including Ethereum, Arbitrum and Polygon. The proposal received roughly 93% support (about 13.9 million UNI voting yes) and will move to binding on‑chain voting the week of July 13 if approved. Fees will apply to static‑fee, Continuous Clearing Auction and aggregator‑hook pool families, flow into TokenJars on each chain, and be burned as UNI on Ethereum. The changes aim to expand the UNI burn engine while slightly reducing returns for liquidity providers.