Uniswap management is preparing to vote on a proposal that would allow protocol fees for the first time in select Uniswap v4 liquidity pools. In addition, there is a proposal to extend the compensation mechanism implemented in Uniswap v2 and v3 to Robinhood Chain.
The final on-chain voting process has begun for both proposals. Voting opens on Sunday and runs until July 26. Uniswap founder Hayden Adams said they expect the proposals to have a significant impact on the $UNI combustion mechanism, especially highlighting current trading volumes on Robinhood Chain.
The Uniswap v4 proposal calls for enabling protocol fees in fixed-fee pools, pools created through perpetual swap auctions, and pools using aggregator hooks. The regulations cover Ethereum, Arbitrum, Base, BNB Chain, Polygon, Optimism and Robinhood Chain networks.
According to the proposal text, a second vote will take place later for the remaining five networks. This is because Uniswap’s GovernorBravo management agreement allows up to 10 on-chain transactions in a single offering.
A separate Robinhood Chain proposal from Hayden Adams aims to enable fees for Uniswap v2 and v3 pools on the network. All three protocol versions of Uniswap became available during the mainnet launch of Robinhood Chain on July 1.
Related news Analyst: “The leverage cleanup in XRP is complete; conditions are similar to the period when it rose 8x”
According to data in the proposal, the total exchange volume of Uniswap applications on Robinhood Chain exceeded $6 billion as of July 10. The Ethereum Layer 2 network, developed with the Arbitrum infrastructure, recorded approximately $3.1 billion in decentralized exchange volume in its first week. It was noted that memecoins were mainly traded during the initial trades.
The protocol fees collected under both proposals will be transferred to the $UNI combustion mechanism, which was established by the UNification board ordinance, which was approved in December with 99.9% support.
This governance change enabled protocol fees in the Uniswap v2 and v3 pools on the Ethereum mainnet, and 100 million $UNI were burned in Uniswap’s treasury. However, the implementation of v4 fees was deferred to a later proposal pending the completion of the necessary technical infrastructure.
The reimbursement mechanism has reportedly been expanded to eleven different networks so far. Under the Uniswap v4 proposal, the protocol set a daily record last month by burning 186,000 $UNI in one day.
Enabling fees in Uniswap v4 requires a more complex infrastructure compared to previous versions. While v2 and v3 used fixed fee tiers, v4’s hook architecture allows pools to change their fees from block to block.
The new proposal creates a management-controlled system that categorizes pools under specific “families” and calculates compensation for each pool according to predefined rules, rather than setting compensation individually.
Both proposals use the accelerated governance process adopted under UNification. This process skips the request for comment stage and goes straight to on-chain voting after a five-day Snapshot voting period.