Uniswap ‘Fee Switch’ Pilot Likely To Go Ahead

The pilot’s test parameters will be locked in at 1/10 or 10% of select pools

article-image

Source: DALL·E

share

key takeaways

  • The pilot will run for 120 days if the vote passes
  • At the time of writing, 3 million UNI token votes have been cast in favor of implementing the pilot

A proposal to switch up fees imposed by decentralized crypto exchange Uniswap passed with overwhelming support from Uniswap’s community governance.  

Meanwhile, a voting period for a so-called consensus check to launch a pilot version of the fee implementation has begun.

The pilot proposes the test parameters will be locked in at 1/10 or 10% of select liquidity pools — meaning a 10% fee would be applied to that percentage of the selected pool, the lowest portion the code permits. 

Pools chosen for the pilot include 0.05% of DAI-ETH, 0.3% of ETH-USDT and 1% of USDC-ETH.

Any value accrued from the pilot will remain in the protocol until the Uniswap governance agrees on where these funds should be allocated — details on the revenue’s distribution have not yet been provided.

Voting on the pilot’s implementation started on Aug. 4 and will end on Aug. 9 at 6 pm ET. As of publication, three million UNI token votes have been cast in favor of the pilot, with only 46 UNI votes against.

If passed, the public test would run for 120 days before being turned off.

Although the majority of voters favor the pilot, not all community governance members are sold on the proposal’s timing.

Brian Park, a community member that goes by BJP3333, told Blockworks that implementing the fee switch could potentially hurt Uniswap’s position in the current highly competitive DEX market.

“Despite Uniswap having this lead right now, it could very well change the next year or so,” Park said. “Curve v2, Sushi Trident, Quickswap and Shell Protocol are all developing their own concentrated liquidity AMMs [automated market makers].”

And monetizing fees right now could be a little early. 

“Let’s not get so complacent with this lead where you’re now going to look to monetize fees at the expense of liquidity providers,” he said. “Dipping into their profit margin which could potentially cause them to leave at the time when the DEX [decentralized exchange] space is very competitive.”

Read more: The Investor’s Guide to Impermanent Loss


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates (3).png

Research

Pear Protocol has proven its market fit through its pair-trading infrastructure, sustaining consistent trading activity despite recent headwinds. Its strategic pivot toward Hyperliquid integration represents a major growth catalyst amid industry consolidation. While short-term token unlocks present challenges, current valuations and liquidity conditions may offer compelling opportunities for investors.

article-image

After a jittery few months, recent economic data is hinting at a resilient economy that is beginning to re-accelerate

article-image

The stablecoin bill now heads to the president’s desk

article-image

The House on Thursday passed the CLARITY Act, a landmark cryptocurrency market structure bill

article-image

Interchain Labs will focus on sovereign L1s and institutional demand, abandoning plans for smart contracts on the Cosmos Hub

article-image

Also, only three tokens have outperformed bitcoin so far this year: XMR, HYPE and SKY

article-image

The fund group has submitted proposals in recent months for other funds that would hold litecoin, solana, XRP, HBAR, Sui and others