I just saw that the Uniswap community approved a pretty interesting proposal regarding the activation of the fee switch. Basically, what’s happening is that they want to expand this mechanism to eight Layer 2 chains, including Base, Arbitrum, and OP Mainnet.

The idea is that a significant portion of the fees generated by liquidity providers on these networks will be allocated to a rewards fund. And here’s the interesting part: UNI holders can burn their tokens to claim these rewards, which could potentially double or even surpass current yields.

This isn’t the first time Uniswap has implemented this. The fee switch has been active for a few months on Ethereum mainnet v2 and some v3 pools, accumulating around $3.3 million in revenue. But what caught my attention is how Base has become the most profitable chain for Uniswap, generating $55 million in fees, even surpassing Ethereum.

In market terms, UNI has shown modest movement in recent days. The proposal generated some interest, although the price movement has been more subdued than some expected, with minor fluctuations in the short term.

For those of us following the protocol, this represents an important step toward creating value for holders. The mechanism of burning UNI to access fee rewards creates an interesting incentive, especially considering these Layer 2 chains are generating significant volume. It’s worth keeping an eye on how this develops in the coming weeks.