Uniswap Labs kicked off a Snapshot vote on July 7 to integrate v4 pools into the existing fee and burn program. The binding on-chain vote is scheduled for the week of July 13. If approved, transaction fees from v4 pools will be used to buy back and burn UNI tokens — sending them to an irrecoverable Ethereum address, permanently removing supply from circulation.
v4's unique hook system demands a dual-contract architecture
Unlike the fixed fee structures of v2 and v3, v4 pools allow per-block fee variation via its "hook" mechanism. The proposal addresses this complexity with a dual-contract system: the first contract sets applicable fee rates, while the second enforces policies and transfers collected fees to a designated address. This modular design enables future governance changes by updating only the policy contract. Three v4 pool types are covered: hookless pools, auction-created pools, and those using aggregator hooks to import external liquidity.
Base network gets 3 bps, others 10 bps
Fee rates are set at 3 basis points on Base and 10 basis points on other supported networks — including Ethereum, Arbitrum, Base, Celo, OP Mainnet, Soneium, X Layer, Worldchain, Zora, BNB Chain, and Polygon. Aggregator hook pools may set fees above the standard cap.
Liquidity providers face yield reduction, sparking debate
With protocol fees in place, a portion of user transaction fees will go to Uniswap itself, directly reducing returns for liquidity providers. Guillaume Lambert, head of Panoptic, argued that a tax-like fee structure in v4 could drive away LPs, repeating the liquidity declines seen in v2 and v3. Balancing interests between UNI holders and LPs is at the core of the controversy.
Single-day burn record of 186k UNI; Robinhood Chain hits $250M volume in first week
Last month, Uniswap set a single-day burn record of 186,000 UNI, surpassing the previous 134,000 high. As of July 7, UNI trades at $3.23 with a market cap of approximately $2 billion — far below its May 2021 peak of $44.97. Despite the price gap, ecosystem growth continues: Uniswap deployed on Robinhood Chain at the start of July, activating v2, v3, v4, and UniswapX products on day one. Within a week, it processed over $250 million in trading volume on the new network.