How Uniswap's Fee Switch Redefined Revenue

The Uniswap fee switch is a governance setting that allocates a portion of the swap fees on Uniswap not entirely to liquidity providers but to the protocol itself. This supports the continuous burning of UNI, the governance token of the protocol on Ethereum. Traders are searching for this mechanism because what is actually supported by holding UNI has changed.

This mechanism is more complex than simple revenue sharing, and many stumble over the conditions associated with the funds.

Overview of Uniswap's Fee Switch

|-----------------|---------------------------------------------------------------------| | Item | Details | | Mechanism Name | Protocol Fee Switch. Funded through TokenJar and Firepit contracts | | Target Token | UNI, the governance token of Uniswap | | Blockchain | Ethereum. Fee collection has also been expanded to six additional networks | | Activation Proposal| UNIfication. Submitted on November 10, 2025, and approved with about 99.9% support in December 2025 | | Retroactive Burn at Activation | 100 million UNI | | Expansion Proposal | Proposal 100. Executed on Monday, July 27, 2026, extending fees to v4 pools | | Target Chains after July 27 | Ethereum, Arbitrum, Base, BNB Chain, Polygon, OP Mainnet, Robinhood Chain | | v2 Fee Distribution Before | 0.30% of each swap. All to liquidity providers | | v2 Fee Distribution After | 0.25% to liquidity providers, 0.05% to the protocol | | Release Conditions | Fees are released from the TokenJar contract only if UNI is burned in the Firepit | | Daily Revenue Directed to Burn | Approximately $114,000 in early July 2026, about $325,000 after July 27 | | Trading on Phemex | UNI is available for trading on Phemex, with USDT-denominated futures pairs listed |