TL;DR
- Proposal activates fees on all v3 pools and eight new chains.
- UNIfication allows faster governance with direct Snapshot votes.
- Cross-chain fees are sent to Ethereum for automated UNI burns.
- New tier-based adapter applies fees across pools without extra votes.
Uniswap governance is reviewing a proposal that seeks to extend the protocol’s fee system to eight additional blockchain networks and to activate fees across all remaining version 3 liquidity pools on Ethereum. The proposal is open for voting under the decentralized exchange’s UNIfication governance model. This process enables fee-related decisions to progress more quickly through community review while retaining structured execution on-chain.
The proposed expansion would activate protocol fees on Arbitrum, Base, Celo, OP Mainnet, Soneium, X Layer, Worldchain, and Zora. These networks already support high volumes of activity across the decentralized finance ecosystem. Consequently, the extension would allow a more uniform fee model across all supported deployments.
The update also includes a new tier-based protocol fee adapter, which automatically assigns fee rates to pools based on the existing liquidity provider fee tier. The structure removes the need for governance votes on individual pools and reduces the operational burden on UNI holders. Subsequently, the change is a way to streamline fee activation across all version 3 deployments.
Uniswap Governance Shifts Under UNIfication Model
The UNIfication framework is a major overhaul that altered how Uniswap processes fee-related proposals. The system allows proposals that involve fee parameters to bypass the traditional request-for-comment stage and advance directly to a Snapshot vote. This vote lasts five days, and if a measure passes, it progresses to a binding on-chain vote. Execution remains subject to an on-chain timelock once the proposal is accepted.
The current proposal is the first broad test of the UNIfication model. Governance contributors have said the new system was designed to support faster adjustments while maintaining safeguards for protocol oversight. They said that rapid governance cycles are required as market conditions shift and adoption expands across multiple chains.
Uniswap Labs founder Hayden Adams said the team monitored earlier fee activation on v2 and selected v3 pools. According to Adams, those systems were operating as expected, and extending the fee model aligns with the protocol’s long-term development plan.
Cross-Chain Revenue Routing Back to Ethereum
The proposal formalizes a cross-chain pathway for revenue. Under the updated model, fees collected on non-Ethereum networks would be sent to chain-specific TokenJar contracts. These contracts would then bridge the funds back to the Ethereum mainnet. Once on Ethereum, the funds would be used to buy UNI and send the purchased tokens to a burn contract.
On Ethereum itself, a contract known as the Firepit would handle fees generated by local pools. This structure supports the protocol’s usage-linked burn mechanism, which reduces UNI supply as activity increases. According to protocol contributors, the burn system has already functioned across multiple tokens collected through initial fee activation.
Unichain sequencer revenue currently uses a similar pathway to route value back to Ethereum for burns. The new proposal expands this structure to a wider range of assets and networks. The design aims to consolidate cross-chain activity into a single economic system centered around Ethereum.
Market Effects and Structural Changes for v3 Pools
If approved, the proposal would place protocol fees on all version 3 pools across all supported networks. This marks a structural shift from the earlier model, where fee activation required dedicated governance votes for each pool. Under the new approach, all pools fall under the same rules, and the tier-based adapter assigns fee parameters automatically.
The change could broaden Uniswap’s ability to capture value across multichain ecosystems. Governance contributors have pointed to rising market-adjusted total value locked on Ethereum since the first fee activation. They said this offers early evidence that the system can operate at scale.
Uniswap has continued to grow its institutional footprint while introducing new features. These include continuous clearing auctions and support for direct trading of tokenized funds. The updated fee model would extend the protocol’s monetization structure across a larger set of users and networks.
The Snapshot vote for the proposal concludes on February 23. If approved, two parallel on-chain proposals would be submitted due to contract size limits. Those proposals would split the fee activation across networks and pools. Execution would follow the timelock schedule once both measures pass on-chain.
Despite the Uniswap announcements, the UNI token has faced a bearish shift following the recent crypto market crash. At press time, the UNI price was trading at $3.36, a 1.17% decline from the 24 hour high.
