Uniswap’s UNI jumps 15% as governance vote to expand fee switch gains momentum
UNI tokens surged 15% following a Uniswap governance proposal to expand the fee switch across eight new chains and automate fee collection.Summary
Uniswap's UNI token climbed approximately 15% as a key governance proposal gained traction, aiming to significantly broaden the protocol's revenue capture. If approved, the proposal would activate the 'fee switch'—which redirects trading fees to the protocol treasury—across eight additional layer-2 chains and implement a tier-based v3 system to automate fee collection on all v3 pools by default, eliminating the need for individual pool activation.
This expansion is estimated to add roughly $27 million in annualized revenue on top of the existing $34 million annualized revenue already being generated, which has funded over $5.5 million in UNI burns since the initial fee switch rollout late last year. The move solidifies Uniswap's transition into a cross-chain revenue-generating protocol, tying UNI token economics more closely to aggregate trading activity beyond the Ethereum mainnet.
The rally occurred amid a broader crypto market rebound, though the long-term success of this fee structure hinges on whether increased protocol fees impact Uniswap's competitiveness against alternative venues on fee-sensitive layer-2 networks.
(Source：CoinDesk)