Motoswap Challenges Uniswap With Fee-Sharing Model on Ethereum

Motoswap, a decentralized exchange (DEX), has launched on Ethereum, introducing a new trading model that distributes fees among liquidity providers, traders, MOTO stakers, the treasury, and MOTO buy-and-burn. This launch marks a significant departure from traditional DEXes like Uniswap v2, which have been criticized for treating traders as the source of fees rather than participants.

According to Chainwire, on-chain volume is driven by memecoins and trench traders, who prioritize speed and attention over settlement. Motoswap's founders argue that Uniswap became the default venue for this activity not because it was built for it, but because there was nowhere else to go. They claim that major venues treat traders as fee sources rather than participants.

Motoswap's launch mechanics are designed to address this issue. Tokens deployed through Motoswap open two pools, TOKEN/ETH and TOKEN/MOTO, with the LP burned inside the launch transaction. Half of the MOTO pool is locked under the token permanently, creating a demand for new tokens that is driven by demand for MOTO rather than narrative.

The deployer earns a 0.2% cash cut of their own token's trades, claimable without ever selling into their own chart. This is in contrast to Uniswap v2, where the deployer earns nothing and has only one way to get paid: by selling. Motoswap's founders argue that this difference is why launches have gone to Solana and stayed there.