Uniswap, a leading decentralized exchange protocol, is asking its community for approval to expand its fee collection system. The proposal targets eight additional blockchain networks and all remaining version 3 liquidity pools on Ethereum.
The governance vote, currently underway, would enable protocol fees on networks including Arbitrum, Base, Celo, and OP Mainnet. A new tiered system will automatically set fee rates for pools based on their liquidity provider structure.
Revenue generated on these layer 2 networks will be sent back to Ethereum's mainnet. This collected revenue will then be used to automatically purchase and permanently remove UNI tokens from circulation, reinforcing a deflationary mechanism tied to protocol usage.
This vote represents a significant test for Uniswap's UNIfication governance framework. If approved, the expansion promises to widen Uniswap's revenue capture across various ecosystems and further solidify its deflationary tokenomics.