Uniswap rolls out the long-awaited fee switch for
$UNI holders!
Here's the TL; DR of UNIfication proposal:
➠ UNI Overhaul
— Redirects 16.7%-25% trading fees to UNI burn mechanism
→ v2 pools: 0.05% protocol fee (LPs get 0.25% from 0.3%)
→ v3 pools: LPs get 3/4 of fees for low tiers (0.01%, 0.05%) and 5/6 for higher (0.30%, 1%)
—
@unichain sequencer fees
Directs ~$7.5M annualized sequencer fees (post-L1 costs and 15% Optimism share) into the UNI burn mechanism
— Protocol Fee Discount Auctions (PFDA)
PFDA is auctions temporary fee discounts to traders, internalizing MEV that would normally go to validators.
Winning bids go to UNI burn, potentially increasing LP returns by $0.06-$0.26 per $10k traded
— Transforms Uniswap v4 into an on-chain aggregator via Hooks with programmatic UNI burn
— Retroactive 100M UNI Burn (~16% of circulating supply)
--
➠ BusOps
- Uniswap Foundation merges with Uniswap Labs, restructuring and streamlining revenue
- $20M annual UNI budget (from 2026, distributed quarterly) for protocol development
- 5-member board:
@haydenzadams,
@devinawalsh,
@nkennethk,
@_callil, and
@hal2001
- And permanent lock of liquidity for Unisocks, 🧦
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After five years of anticipation due to SEC pressure, Uniswap is finally activating fee distribution directly benefiting UNI holders. I'm quite excited to see UNI become deflationary with aligned incentives, as well as improved alignment for decentralized governance.
Habibi, you're not bullish enough.