Uniswap is seeking community backing to expand its fee collection system to eight new blockchain networks along with all version 3 liquidity pools on Ethereum. This governance proposal has now opened for voting and will enable fee activation on various networks including Arbitrum, Base, Celo, OP Mainnet, Soneium, X Layer, Worldchain, and Zora.
How will this change affect liquidity providers? The introduction of a tier-based adapter will automatically designate fee rates for liquidity pools, based on their existing fee structures. This approach eliminates the need for separate governance actions for each pool, simplifying the process and potentially increasing efficiency.
The revenue generated on these layer 2 networks will be transferred back to the Ethereum mainnet. This revenue will support automated purchases for removing UNI tokens permanently from circulation, further reinforcing the protocol's deflationary model that ties token supply to its usage. This mechanism mimics the structure used for revenue generated by the Unichain sequencer, helping to create a consistent usage-linked burn model.
Why is this vote significant for Uniswap? This decision represents the first major evaluation of the UNIfication governance reform. This reform streamlines the process for fee-related proposals, allowing them to bypass the usual request-for-comment phase and move directly to a quick five-day Snapshot poll. If the proposal secures majority approval, the subsequent steps to ratification would follow, solidifying Uniswap’s position in the decentralized finance landscape.
If the community approves this expansion, it would considerably enhance Uniswap's capability to capture revenue across diverse ecosystems, aligning with its overall strategy of promoting a deflationary economic model linked to user activity within the protocol.