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The Uniswap community will vote from February 27 to March 1 on a proposal to expand Uniswap fee distribution across eight Layer 2 networks, a move that could direct up to $27 million in additional annualized value toward UNI holders.
The vote, taking place on Uniswap’s governance forum and Snapshot, seeks to activate the protocol’s fee switch on multi-chain deployments, extending Uniswap fee distribution beyond Ethereum mainnet and deepening revenue capture for token holders.
If approved, the Uniswap fee distribution mechanism would apply to versions of the protocol deployed on Base, OP Mainnet, Arbitrum, Celo, Soneium, Worldchain, X Layer, and Zora.
The proposal would capture protocol fees from Uniswap V2 and V3 pools on those chains and route them toward token burns, reinforcing Uniswap fee distribution as a central governance priority.
Uniswap has gradually implemented its fee switch since governance first approved the mechanism in principle.
The initial rollout applied to selected V3 pools on Ethereum, with ongoing monitoring of liquidity, trading volumes and user migration.
Under the current proposal, fees generated on the eight additional networks would accumulate in a TokenJar contract on each chain, then be bridged back to Ethereum mainnet.
Once consolidated, those proceeds would be used to buy and burn UNI tokens, effectively strengthening Uniswap fee distribution as a value accrual mechanism.
According to data from DeFiLlama, Uniswap generates more than $938 million in annualized fees, making it one of the highest-grossing decentralized finance protocols.
In the first quarter of 2026, the protocol reported $2.75 million in net profit after several quarters of net losses, signaling a return to operational profitability.
Uniswap Labs has previously described governance-enabled fees as part of a broader effort to ensure protocol sustainability.
“The fee switch represents an important step toward long-term protocol sustainability,” — Uniswap Labs, in prior governance commentary.
By expanding Uniswap fee distribution across multiple chains, governance participants aim to capture revenue that would otherwise remain unutilized at the protocol level.
News of the Uniswap fee distribution vote coincided with renewed market momentum for UNI.
The token climbed to approximately $4.04, marking a one-week high and one of its more notable breakouts of 2026.
UNI had trended downward in recent months amid broader crypto market weakness.
However, the prospect of expanded Uniswap fee distribution and increased token burns has historically served as a bullish narrative for the asset.
Trading activity remains concentrated on major centralized exchanges, particularly Binance and MEXC, where a significant share of volumes are paired against USDT.
Market analysts note that concentrated liquidity can amplify short-term price swings, especially during governance-driven catalysts.
While price targets circulating in trading communities suggest potential upside toward $4.80 or even $6, such projections remain speculative. Fundamentally, the long-term impact will depend on whether Uniswap fee distribution materially increases burn volumes and tightens token supply over time.
If implemented, the updated Uniswap fee distribution framework would apply to both V2 and V3 protocol fees on the specified networks.
Fees collected on each chain would first be aggregated locally before bridging to Ethereum, where conversion into UNI and subsequent burns would occur.
Uniswap governance has emphasized gradual rollout and risk management.
“Governance should take a measured approach to activating the fee switch to ensure minimal disruption to liquidity,” — Uniswap governance discussion, Snapshot forum.
The burn system is designed to accept fees in multiple tokens, converting them as needed before executing UNI burns.
This flexible approach allows Uniswap fee distribution to function across heterogeneous liquidity pools and token pairs.
Uniswap remains one of the most widely used decentralized exchanges, serving both as a spot trading venue and as a yield source for liquidity providers.
As competition intensifies across decentralized markets, the expansion of Uniswap fee distribution could help reinforce its position by aligning protocol revenues more directly with token holder incentives.
For crypto investors, the outcome of the February 27 to March 1 vote will determine whether Uniswap deepens its transition from a high-volume DEX to a consistently revenue-generating protocol with systematic value return.
If passed, the expanded Uniswap fee distribution model would mark one of the most comprehensive multi-chain revenue-sharing efforts yet undertaken in decentralized finance.
