Uniswap's protocol fee mechanism is now active and burning UNI tokens, following community governance approval of fee expansion across multiple blockchain deployments. The activation follows the UNIfication proposal passed in December 2025, which introduced a fee structure to the decentralized exchange protocol.

Three governance votes are currently underway to expand fee collection. A proposal enables fees on Robinhood Chain for Uniswap v2 and v3 pools. A second vote activates protocol fees on v4, the protocol's newest liquidity management system. A third proposal addresses fee collection cleanup across Xlayer, Avalanche, Megaeth, and Sonium, secondary networks where Uniswap liquidity operates.

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The fee mechanism directs a portion of swap revenue to a protocol-controlled address, which converts the collected tokens to UNI and removes them from circulation. Hayden Adams, Uniswap's founder, said in a social media post that confusion persists among users about the fee status. "So many people didn't get the memo: uniswap protocol fees are on and burn UNI," Adams wrote, noting he receives constant questions from users who believe the fees remain inactive.

Uniswap's governance framework allows token holders to vote on fee parameters and deployment choices. The three active proposals are listed on the Uniswap Foundation voting interface and being debated on the protocol's governance forum. The votes represent the first broad-based fee expansion since the original mechanism launched in late 2025.