Uniswap governance has flipped on the protocol fee switch for v4 liquidity pools, sending a slice of swap fees into a UNI buy-and-burn program. The move passed with 46.6 million votes in favor and about 1.27 million against, and daily protocol revenue has climbed to roughly $325,000 from a prior $114,000 run rate.
How the fee switch works
The mechanism collects about one-sixth of swap fees into TokenJar contracts, which then buy and burn UNI. That's a shift from earlier designs where fees might have gone straight to tokenholders. The fee is additive to swap fees, so LP yields don't take a hit.
What the vote decided
Governance Proposal 100 cleared with a wide margin — 46.6 million for, 1.27 million against. The vote didn't just flip a switch; it locked in the buy-and-burn approach over any direct distribution model. Uniswap v4's flexible hook system made the whole thing possible, letting pools route fees into TokenJars without breaking custom logic.
No checks for UNI holders
Don't expect fee checks in your wallet. The burn is the point. By pulling UNI out of circulation, the protocol captures value on its own token rather than paying out cash. That's a deliberate design choice, and it's now live.
Seven networks live
The switch is active on Ethereum, Arbitrum, Base, BNB Chain, Polygon, OP Mainnet and Robinhood Chain. Uniswap has grown into a multi-chain liquidity system, and this fee mechanism now spans all of those environments. Any change to the fee rate or coverage would require another governance vote.
