Uniswap's Fee Switch Goes Live: UNI Price Remains Near Lows Despite Deflationary Effects
The Uniswap fee switch has finally gone live, and it's a momentous occasion for the token. The mechanism, which was approved in December 2025 through the UNIfication proposal, changes how fees are collected on Uniswap v2 and v3 pools. Liquidity providers now take 0.25% instead of 0.30%, with the remaining 0.05% going to the protocol.
The protocol revenue funds a programmatic mechanism that buys and burns UNI tokens, essentially creating a deflationary effect on the supply. To kick-start this process, 100 million UNI tokens were burned from the treasury in January 2026, roughly 16% of the total supply.
Despite these changes, the price of UNI remains near its lows, trading at around $3.43 as of August 12th. The market context has been brutal for altcoins this year, with good news often being absorbed rather than celebrated.