Uniswap protocol fee and UNI burn proposals

In early July, Uniswap governance opened a Snapshot vote to lower liquidity‑provider incentives and to enable protocol fees on its new V4 pools across multiple blockchains. The proposal received overwhelming support—about 93% of UNI voters—and was slated for an on‑chain binding vote in mid‑July.

A week later, additional proposals were introduced that would extend the fee switch to all eleven networks supported by Uniswap (including Ethereum, Arbitrum, Base, BNB Chain, Polygon, Optimism and the Robinhood Chain) and route the collected fees to the UNI‑burn contract rather than the treasury. Voting on these proposals ran from late July 21 through July 26, indicating a continued effort to capture value for UNI holders while adjusting liquidity incentives.

On July 17, governance opened two further proposals to activate protocol fees on V4 liquidity pools and on the Robinhood Chain for V2 and V3 pools, directing the revenue to the UNI‑burn mechanism. The vote closed on July 26; the proposals highlighted the Robinhood Chain’s $6 billion weekly volume and Arbitrum’s $3.1 billion first‑week volume.

The fee switch went live on July 27, applying a revenue‑sharing model to the Robinhood Chain and selected V4 pools. Liquidity providers warned of 25‑33% reductions in fee revenue, while founder Hayden Adams clarified that a 5‑basis‑point protocol fee represents about 14% of total swap fees and is additive rather than a cut to existing LP earnings.