So, that Uniswap proposal that happened in March has already been approved. Basically, they activated the fee switch on eight Layer 2 chains - Base, Arbitrum, OP Mainnet, and others. I found the mechanism interesting: a portion of the liquidity providers' fees go into a special pool, and then UNI holders can redeem tokens by destroying UNI equivalent to the burned amount. It's a pretty creative incentive for participation.

What stands out is that Base has skyrocketed in numbers. Since 2026, the network has generated 55 million in fees for Uniswap - surpassing Ethereum, which has always been the main one. For context, on Ethereum, the mechanism has been running since last December and has already collected 3.3 million. So, the growth on Base is truly remarkable.

People were expecting this to double current yields, and the mechanism of burning UNI to redeem rewards is quite well thought out. It creates an interesting feedback loop between token burning and value generation.

Now, looking at UNI's performance after all this... it has dropped 0.82% over the past seven days. Not exactly the pump some expected, but it makes sense - the market has already priced in a lot. Anyway, it's an important development for the protocol's decentralized governance.