Uniswap Fee Switch Expansion Plan

Uniswap token holders have started voting on a major proposal to expand the fee switch to eight Layer 2 blockchains including Base, Arbitrum, and OPMainnet.

Revenue Distribution Model

Once activated, at least one-sixth of fees collected by liquidity providers on these chains will be used to burn UNI tokens, benefitting investors. This is expected to significantly boost returns.

Current Status of the Fee Switch

Since its launch on Ethereum mainnet v2 and some v3 pools in December last year, the fee switch has generated $3.3 million. Since 2026, Base has become the largest source of fees, generating $55 million.

Market Impact

Following the proposal, UNI rose 9% in the past seven days, outperforming both Bitcoin and Ethereum, which declined during the same period. Voting will conclude on March 4.