Uniswap Protocol Fees Move Onchain to Fuel UNI Burn

Steady attention without excessive speculation.

The push arrives through two temperature-check votes on the Uniswap governance forum. Both drew strong delegate support. Both now head toward final onchain execution.

What the Uniswap Protocol Fees Proposals Cover

Uniswap Labs posted the first temp check on July 7, 2026. It activates fees on a subset of Uniswap v4 pools rather than all of them. The scope covers three pool families: static-fee pools without hooks, CCA (Continuous Clearing Auction) pools, and aggregator hook pools.

These fees switch on across 11 chains where v2 and v3 fees already run. That list includes Ethereum, Arbitrum, Base, Polygon, BNB Chain, and OP Mainnet. It also covers Celo, Soneium, X Layer, Worldchain, and Zora.

According to the v4 temp-check thread, a new V4FeePolicy and V4FeeAdapter system handles collection. Uniswap Labs wrote that “protocol fees are now live across all v2 and v3 pools on 11 chains.” So this vote extends that same rollout into v4.

Why the Votes Split Into Three Onchain Proposals

The forum explains that onchain execution will not arrive as one transaction. Instead, it splits into three separate proposals. The reason is a GovernorBravo limit of 10 actions per proposal.

The first proposal activates v2 and v3 fees on Robinhood Chain. The second, called V4 Part 1, turns on v4 fees for Ethereum, Base, Robinhood, BNB Chain, Arbitrum, Optimism, and Polygon. The third, V4 Part 2, covers Celo, Soneium, X Layer, World Chain, and Zora.

That third proposal is still pending. Uniswap Labs describes it as coming soon. The full v4 rollout will land in stages, not all at once.

How the UNI Burn Mechanism Works

The fee design traces back to UNIfication, a proposal Hayden Adams and others posted on November 10, 2025. Governance approved it in December 2025 with roughly 99.4% support. It also triggered an initial 100 million UNI treasury burn.

Here is the flow. Collected fees land in per-chain TokenJar contracts. To withdraw those fees, a claimant must burn an equivalent value of UNI through the Firepit mechanism. In practice, searchers race to claim the fees and burn the required UNI.

Burns that happen on L2s and alt-L1s then bridge back to Ethereum mainnet. From there, the UNI moves to the 0xdead burn address and leaves circulation for good. Because the burn scales with fee revenue, more active chains mean more UNI destroyed.

Robinhood Chain Joins the Fee System

Uniswap Labs posted the second temp check on July 11, 2026. It extends the fee and burn infrastructure to Robinhood Chain, an Arbitrum Orbit network. The vote enables v2, v3, and v4 fees there in one move.

Robinhood Chain launched on July 1, 2026 with Uniswap v2, v3, and v4 live from day one. According to the Robinhood temp-check thread, cumulative volume passed $1 billion by July 10. In peak 24-hour windows, the chain has reportedly driven more than 80% of total Uniswap fees.

The Numbers Behind the UNI Burn

The scale is already large. The official Uniswap Labs Dune dashboard shows roughly 107.37 million UNI burned as of July 13, 2026. That figure equals about $619.5 million at burn-time prices, and it includes the initial 100 million treasury burn.

Daily fees are running near $5.2 million, according to figures from Hayden Adams and DefiLlama. Over the past 30 days, total fees reached roughly $47.6 million. Most of that came from v3 before the v4 switch. One earlier session saw about 186,000 UNI burned in a single day.

UNI traded between roughly $3.20 and $3.60 through mid-July. It firmed as volume and burn headlines spread. So the token’s supporters increasingly frame UNI as a cash-flow asset, not a governance token alone.

Pushback From Liquidity Providers

Not everyone backs the plan. Some liquidity providers warn that turning fees on cuts their returns. As a result, they argue liquidity could drift toward venues with a bigger split for LPs.

Others question whether Robinhood Chain volume can last. Much of it looks memecoin-driven, and critics link it to gas incentives that may fade. There is also a broader debate about burning UNI versus distributing revenue directly to holders.

Support still looks solid overall. AMBCrypto reported roughly 74% approval across the three onchain proposals on July 14. Snapshot backing for the v4 temp check reportedly reached around 93%. For now, no organized opposition appears likely to block passage.

What Comes Next for Uniswap Protocol Fees

The onchain votes are expected to move through Tally on the standard cadence from the week of July 13 onward. Track the live proposals on the Uniswap Tally page. The V4 Part 2 proposal remains the final piece still waiting to be submitted.

If the votes pass, Uniswap protocol fees will feed the UNI burn across more pools and chains than ever. That could push the annualized burn well beyond current levels. The exact math depends on fee tiers and lasting volume.

This article is informational and not financial advice. Do your own research before making any decision involving UNI or any other token.