UNI sees a 15% increase as governance vote to broaden fee switch gathers support.

A governance proposal aims to implement protocol fees across eight additional chains and automate fee collection for all v3 pools, potentially generating an estimated $27 Million in annual revenue.

Uniswap (CoinDesk)

Key Points:

• The UNI token of Uniswap surged approximately 15% within 24 hours, surpassing the increases of bitcoin and ether, as traders responded to a governance vote focused on enhancing protocol fee capture across various layer-2 networks.
• This proposal seeks to extend the fee switch mechanism to eight additional chains, implement a new tiered v3 fee structure by default for all liquidity pools, and ensure automatic collection of protocol fees for new pools.
• Predictions indicate that this adjustment could contribute an estimated $27 million in annual revenue in addition to the roughly $34 million already allocated for UNI burns, signifying a deeper transformation of Uniswap into a cross-chain, revenue-generating protocol while raising concerns regarding its liquidity competitiveness.

UNI rose nearly 15% over the last 24 hours, exceeding bitcoin’s 4.7% increase and ether’s 8.5% gain, as market participants reacted to a Uniswap governance decision aimed at broadening the protocol’s revenue capture across various layer-2 networks.

If the proposal receives approval, it would broaden the so-called fee switch to eight new chains and substitute the existing pool-by-pool model with a tiered v3 system that activates fees across all liquidity pools by default.

The fee switch serves as a mechanism that reallocates a portion of the platform’s trading fees to the protocol treasury from liquidity providers. The revenue generated from these fees is subsequently utilized for UNI token buybacks, burns, and treasury enhancement, establishing a direct correlation between the platform’s trading activity and the market value of UNI.

A single governance decision is about to add $27M in annualized revenue to Uniswap.

Since the first UNIfication proposal passed, collected protocol fees have already enabled $5.5M+ in UNI burns ($34M annualized). So, what kind of impact could expanding this to eight additional… pic.twitter.com/GjEJbJ0S8b

— Entropy Advisors (@EntropyAdvisors) February 25, 2026

Some forecasts suggest that this shift could produce approximately $27 million in annual revenue in addition to the nearly $34 million currently generated for UNI burns, representing one of the most notable changes in Uniswap’s token economics since the reintroduction of fees late last year.

The governance proposal, divided into two on-chain votes due to transaction constraints, would activate protocol fees across multiple blockchains. It also introduces a new v3OpenFeeAdapter that uniformly applies protocol fees across liquidity pools according to their fee tier, instead of necessitating individual governance activation for each pool.

This adjustment would automate fee collection for all new v3 pools, minimizing manual efforts and potentially expanding revenue collection across less commonly traded pairs.

Since the initial phase of the fee switch implementation late last year, Uniswap has already burned over $5.5 million worth of UNI, indicating an annualized rate of approximately $34 million at current levels.

The surge occurs as the broader crypto markets recover, with bitcoin increasing around 4–5% and ether rising approximately 8% during the same timeframe.

However, the long-term effects will depend on whether increased protocol fee capture influences Uniswap’s liquidity competitiveness on layer-2 networks, where traders sensitive to fees and market makers might shift to alternative platforms.

After several years of generating trading volume without substantial income for token holders, recent quarters indicate that the protocol is starting to retain revenue.

In Q1 2026, Uniswap reported about $3.12 million in gross profit, as per DeFi Llama data, in contrast to essentially zero in earlier periods.

This development follows the gradual activation of the fee switch late last year, which redirected a share of trading fees towards UNI burns.

If approved, the vote would solidify Uniswap’s evolution into a cross-chain revenue-generating protocol, with UNI burns increasingly linked to overall trading activity beyond Ethereum.