Uniswap Activates New Protocol Fee Switch

Uniswap has activated its new protocol fee switch on v4 liquidity pools across seven blockchain networks, yielding around $325,000 in daily revenue from day one.

The fee, roughly one-sixth of the existing swap fee, slightly increases trader costs while maintaining liquidity provider yields. This collected fee is used to burn UNI tokens, reducing the circulating supply and potentially increasing token value.

The activation follows a strong community vote and builds on previous protocol fee implementations, marking a significant milestone for Uniswap and its governance model.