Uniswap tokenholders are voting on proposals to activate the protocol’s fee switch on eight additional blockchain networks, potentially more than doubling the revenue stream for UNI holders. The fee switch, already active on select Ethereum pools, directs a portion of trading fees to a mechanism where tokenholders can burn UNI to claim the funds. This expansion follows a period where the UNI token, despite recent outperformance against major cryptocurrencies, has declined significantly since the initial fee-switch proposal in November.
Uniswap tokenholders began voting on proposals that could grant them access to millions in additional monthly revenue. The price of UNI rose 9% over the past week, while Bitcoin and Ethereum fell.
The proposals seek to activate Uniswap’s fee switch on v2 and v3 deployments across eight layer-2 blockchains including Base and Arbitrum. Activation would direct at least one-sixth of fees from those chains to a token jar for UNI holders who burn tokens.
The fee switch has been active on Ethereum since late December and has generated a cumulative $3.3 million. Expanding it to other chains would likely double that revenue stream.
Data shows Uniswap processed over $1.7 billion in transactions in the past 24 hours. Founder Hayden Adams stated the Ethereum fee switch rollout was successful, with user deposits growing in crypto terms.
Adams wrote on X that “Rollout went very well, with market adjusted [user deposits] up and burn working efficiently.” The initial November proposal, called UNIfication, also burned nearly 100 million UNI tokens.
Despite the mechanism, UNI’s price has fallen 59% to $3.74 since UNIfication was proposed. The current expansion proposals passed an initial vote unanimously.
