Uniswap management has moved two separate proposals that could expand protocol revenues and accelerate UNI burning to the final on-chain vote. If the proposals are accepted, a protocol fee will be charged for the first time in certain liquidity pools for Uniswap v4, and the fee will be applied for v2 and v3 pools on Robinhood Chain. Uniswap founder Hayden Adams said that this step could have a significant impact on UNI burning.
Voting will end on July 26
Voting for both proposals will close on July 26. If the process has a positive outcome, Uniswap will have moved to a new phase in its strategy to increase revenue generation. At the same time, the token burn mechanism associated with the management update approved in December will be supported by a wider revenue base.
Hayden Adams emphasized that the two management proposals submitted direct all new protocol fees towards UNI buyback and incineration, so the impact could be significant.
What networks does the first offer cover?
The initial offering includes enabling protocol fees on select liquidity pools on Uniswap v4. This scope includes Ethereum, Arbitrum, Base, BNB Chain, Polygon, Optimism and Robinhood Chain networks. The offering includes three types of pools: static fee pools, perpetual swap auction pools, and aggregator hook pools.
Mini dictionary: Hook framework is known as the structure that allows adding special rules to pools in Uniswap v4. This system allows fees to be determined more flexibly according to the pool design, rather than remaining fixed.
While Uniswap v2 and v3 are based on fixed fee rates, v4 offers a more flexible fee architecture. Since fees can vary from block to block, it is planned to group similar pools into families, rather than setting an individual rate for each pool. Thus, the protocol aims to apply certain rules on the basis of pool groups.
Separate offer prepared for Robinhood Chain
The second proposal focuses on unlocking protocol fees on Uniswap v2 and v3 pools on Robinhood Chain. Uniswap moved all three protocol versions to this network with the launch of Robinhood Chain, its Ethereum-based layer two mainnet, on July 1. As of July 10, the total cumulative exchange volume on the network exceeded $6 billion.
Using the Arbitrum architecture, Robinhood Chain reached a decentralized exchange volume of approximately $3.1 billion in its first week. Memecoin transactions constituted the majority of this transaction volume. If the proposal is accepted, the protocol fees collected in this network will also contribute to the UNI burning system.
| Title | Detail |
|---|---|
| Robinhood Chain mainnet debut | July 1 |
| Cumulative clearing volume through July 10 | over 6 billion dollars |
| Decentralized exchange volume in the first week | Approximately $3.1 billion |
Link made to previous management decision
All of the fees from these two offerings will support the token burn mechanism that was put into effect with the governance upgrade adopted in December. The management decision in question received 99.9 percent support, enabled protocol fees in Uniswap v2 and v3 pools on the Ethereum main network, and enabled the burning of 100 million UNI from the treasury. Since the necessary infrastructure for Uniswap v4 was not ready at that time, the fee system was not opened in this version.
The governance update adopted in December enabled burning 100 million UNI from the treasury while introducing protocol fees for v2 and v3 pools on the Ethereum mainnet.
The protocol fee system was later expanded to 11 blockchains. In the last month, the largest daily UNI burn in Uniswap history was recorded and approximately 186 thousand UNIs were removed from circulation in a single day. Current offers also progress within the scope of the rapid management framework implemented with Unification. Thanks to this structure, proposals can be moved directly to on-chain voting after passing the five-day Snapshot voting. Discussions on expanding protocol fees began in February.
