UNI has gained about 15% in the past 24 hours, outperforming Bitcoin’s 4.7% gain and Ethereum’s 8.5% gain, as investors reacted to a Uniswap governance vote aimed at expanding the protocol’s revenue capture across multiple Layer 2 networks.
If approved, the proposal would extend the so-called fee switch to eight additional chains and replace the current pool-by-pool model with a tier-based v3 system that activates fees for all liquidity pools by default.
Fee switching is a mechanism that redirects a portion of platform trading fees from liquidity providers to the protocol vault itself. The fee income earned is then used for UNI token repurchase, destruction and fund growth, establishing a direct link between platform trading volume and UNI market value.
A governance decision will increase Uniswap’s annual revenue by $27 million.
Since the passage of the first UNification proposal, protocol fees collected have resulted in the destruction of UNI in excess of $5.5 million ($34 million annualized). So what kind of impact could expand that to eight more… pic.twitter.com/GjEJbJ0S8b
— Entropy Advisors (@EntropyAdvisors) February 25, 2026
Some estimates suggest that this change could increase annualized revenue by approximately $27 million, on top of the approximately $34 million in annualized revenue already generated and used to burn UNI, marking one of the most significant shifts in Uniswap’s token economics since fees were reintroduced late last year.
Due to transaction restrictions, this governance proposal is split into two on-chain votes that will impose protocol fees on multiple blockchains. It also introduces a new v3OpenFeeAdapter that applies protocol fees uniformly across liquidity pools based on fee tiers, rather than requiring governance to activate pools individually.
This change will automatically capture protocol fees for all new v3 pools, reducing manual intervention and potentially expanding revenue collection for long-tail trading pairs.
Since launching the first phase of fee conversion late last year, Uniswap has burned over $5.5 million worth of UNI, which means that at current levels, the annualized rate is about $34 million.
The rebound comes amid a general rebound in the cryptocurrency market, with Bitcoin up about 4-5% and Ethereum up about 8% over the same period.
Still, the long-term impact will depend on whether higher protocol fees impact Uniswap’s liquidity competitiveness on the Layer 2 network, where fee-sensitive traders and market makers can migrate to other venues.
After years of growing transaction volume but no meaningful revenue for token holders, recent quarters have shown the protocol is starting to retain revenue.
According to DeFi Llama, Uniswap’s gross profit was approximately $3.12 million in the first quarter of 2026, while the previous period’s gross profit was effectively zero.
The change follows the gradual activation of a fee switch late last year that redirected a portion of transaction fees towards UNI burning.
If passed, the vote will solidify Uniswap’s transition to a cross-chain revenue-generating protocol, with UNI burns increasingly tied to total transaction activity outside of Ethereum.