Will new Uniswap protocol fee proposals drive ‘substantial UNI burn’？
Uniswap has officially submitted three governance proposals for protocol fee activation across several chains and different versions of the DEX. The first fee proposal will be for versions 2 (V2) and 3 (V3) on the Robinhood chain. The new Ethereum L2 debuted this month, attracting several DEXes, including Uniswap. About 10 days after launch, Uniswap crossed $1B in trading volume – ultimately showing its growing traction. Similarly, the project seeks to activate fees on V4 across Ethereum, Base, Arbitrum, Robinhood, BNB Chain, Polygon and Optimism. Hayden Adams, Uniswaps CEO, added that a third fee proposal for remaining V4 chains will also be submitted soon. Adams said, Both direct all new protocol fees into the existing $UNI burn mechanism. Based on current volumes, especially Robinhood, we expect the impact on $UNI burn to be substantial. Mixed reactions to Uniswaps fee proposal For clarity, fees are what users pay for each swap on the DEX, and they mostly go to liquidity providers (LPs). Protocol revenue (which is partly directed for $UNI burn) is a percentage of the swap fees that goes to the project after a governance vote. In other words, such proposals would directly reduce fees collected by LPs. As such, it was not surprising that some
