Uniswap ‘Fee Switch’ Finally Gets an On-chain Vote

Six months after the idea was first floated, the Uniswap DAO will finally get to decide on implementing a fee switch on select protocol pools

article-image
share

Uniswap community governance is going to be voting on whether it will pilot a “fee switch” on select pools in its decentralized cryptocurrency exchange.

An initial proposal was put forward in July this year, which wanted to begin collecting fees on a small set of Uniswap liquidity pools. Follow-up votes the DAO refers to as “temperature check” and “consensus check” were soon held and the proposal passed, but many Uniswap community members voiced a preference for more time to research and understand the proposal before the final vote. 

Now, almost six months after the idea was first introduced, the Uniswap community will finally hold a binding vote on whether they move ahead with implementation of the fee switch.

The proposal which community members will be voting on presents an opportunity for Uniswap to test the parameters in selected liquidity pools, this includes 0.05% of DAI-ETH, 0.3% of ETH-USDT and 1% of USDC-ETH.

A 10% fee would be applied to that percentage of the selected pools, the minimum value permitted by the code — Uniswap’s underlying smart contracts were immutable the moment they were deployed.

It is important to note that turning on the fee switch will not affect users using the protocol to swap directly, but rather will retain a small amount of what is currently being paid out to liquidity providers. It’s possible the modestly lower fees to those who supply liquidity will serve as a disincentive — precisely what the DAO aims to test.

The pilot will be considered a success if trading volume and market depth for the select pools are not diminished after the fee switch is executed.

Voting will go live in the next 14 day after technical due diligence of proposal is reviewed by its authors. UNI token holders will then have 7 days to cast their vote, followed — if passed — by a 2-day time lock before automatic execution.


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 (2).png

Research

We’re bullish on the PUMP token. We believe Pump.fun's brand strength, existing integrations, product roadmap, and strategic levers justify PUMP's TGE valuation, and expect the token to re-rate meaningfully higher in the months ahead.

article-image

The non-profit’s “Project Open” seeks to let stocks trade directly on Solana

article-image

The acquisition is Pump.fun’s first, and comes just days before its planned ICO

article-image

As Trump’s tariff war reignites, everyone is assuming the dollar will continue its path lower. But the journey might be bumpy

article-image

A valuation model for “blockchain GDP”

article-image

The mini app combines vibe-coding with a hypercasual game feed and is coming to the new Coinbase Wallet

article-image

An improbable tale of the world’s 40th graphics-chip startup