Uniswap has expanded its protocol fee mechanism and UNI token burn program to three additional blockchain networks: BNB Chain, Polygon, and Celo. The move broadens the decentralized exchange’s revenue-sharing model beyond Ethereum, where the fee switch was first activated earlier this year.
Three new chains get the fee switch
The expansion means traders on BNB Chain, Polygon, and Celo will now pay a small protocol fee on swaps conducted through the Uniswap interface. That fee flows into a pool that is used to buy back and burn UNI tokens, permanently removing them from circulation. Uniswap initially piloted the model on Ethereum before deciding to roll it out across other chains where the protocol has significant activity.
How the burn works
Under the fee system, a portion of the swap fee collected by Uniswap is redirected to the protocol treasury. That treasury then periodically purchases UNI from the open market and sends the tokens to a burn address. The process reduces the total supply of UNI over time, a feature that token holders have pushed for as a way to distribute value back to the community. The exact percentage of fees allocated to the burn varies by chain but is set by Uniswap governance.
The expansion comes as Uniswap continues to dominate the decentralized exchange space, handling billions in monthly trading volume across multiple networks. By extending the fee-and-burn model to BNB Chain, Polygon, and Celo, the protocol aims to capture more revenue from its largest liquidity pools outside Ethereum.
The change is already live. Traders on those chains will see the fees applied automatically through the Uniswap front end.
