Uniswap Activates Protocol Fees on V4 Pools

Uniswap has activated protocol fees on its v4 liquidity pools across seven networks, resulting in $325,000 per day in revenue. The fee switch was activated on July 27, 2026, after a governance proposal passed with overwhelming support.

The protocol fee is set at approximately one-sixth of the existing swap fee, which translates to about 5 basis points going to the protocol. Liquidity providers will keep their yields largely intact, as per Uniswap founder Hayden Adams' design intent: 'to avoid cannibalizing the returns that keep liquidity in the pools in the first place.'

The fees collected flow into TokenJar contracts, which require the burning of UNI tokens to claim. This means revenue generated by the protocol gets converted into permanent supply reduction, with every dollar of fees creating a little less UNI in circulation.