Uniswap Activates Fee Switch on v4 Pools

Uniswap has activated its fee switch on v4 liquidity pools, directing collected fees toward UNI buy-and-burn mechanics instead of direct distributions to tokenholders. This change was made possible by Uniswap Governance Proposal 100, which passed with approximately 46.6 million votes in favor and 1.27 million opposed.

The fee switch collects around one-sixth of swap fees into TokenJar contracts, which are then used to buy and burn UNI. As a result, daily protocol revenue has increased to about $325,000 from a prior run rate near $114,000.

This activation spans seven networks: Ethereum, Arbitrum, Base, BNB Chain, Polygon, OP Mainnet, and Robinhood Chain.

UNI holders will not receive fee checks directly; instead, the mechanism aims to capture protocol value through token burns. This shift reflects Uniswap's move from theory into a more active value-capture model, at least for v4 pools within the defined structure.