Uniswap has opened voting on a proposal to expand protocol fees to all v3 pools and extend the model across eight blockchains. The vote is scheduled to end on February 23. If approved, the system would apply protocol fees automatically and send the collected revenue directly to the protocol treasury.
Automated fee adaptor would replace pool-by-pool governance
Under the proposal, Uniswap would replace manual governance decisions with an automated fee adaptor. The mechanism is designed to apply a tiered protocol fee across v3 pools based on the fee tiers selected by liquidity providers. That would remove the need for separate governance approval for each individual pool and speed up how protocol revenue is activated.
The proposal also states that part of the treasury inflows is allocated to scheduled UNI burns. In practice, that connects protocol usage and fee generation more directly to changes in UNI supply through a permanent burn process.
Fee rollout would cover Ethereum and eight additional networks
The plan goes beyond Ethereum mainnet. It calls for protocol fee expansion across Uniswap v2 and v3 deployments on Arbitrum, Base, Celo, OP Mainnet, Soneium, X Layer, Worldchain, and Zora. Fees collected on Layer 2 networks would first accumulate in network-specific TokenJar contracts before being transferred to Ethereum.
Once on Ethereum, those funds would move into the Firepit smart contract for permanent UNI burns. The structure would leave Uniswap less dependent on Ethereum alone for protocol revenue and create fee flows from a broader set of scaling networks.
Hayden Adams points to earlier fee monitoring results
Uniswap founder Hayden Adams said on social media that protocol fees have already been monitored on mainnet v2 pools and selected v3 pools since “UNIfication.” According to Adams, total value locked grew in market-aligned pools after implementation, and the burn mechanism proved effective. He argued that those results support extending protocol fees to the remaining v3 pools and the eight additional blockchains listed in the proposal.
Since UNIfication, fees have been monitored on mainnet v2 and many v3 pools. After implementation, total value locked grew in market-aligned pools, and burning proved effective. The current proposal aims to activate fees in the remaining v3 pools and across eight new blockchains.
Court ruling keeps core AMM algorithm open for public use
Separately, Uniswap recently won a legal case tied to its AMM technology. Hayden Adams said a U.S. federal court ruled in Uniswap’s favor on whether the AMM algorithm could be protected by patent. The decision confirmed that the core protocol algorithm remains available for public use.
The case drew attention after entities associated with Bancor attempted to patent the AMM formula. The court blocked that effort, a result that preserved open access to a core piece of DeFi infrastructure.