Uniswap Proposes to Enable Protocol Fees for v4 Liquidity Pools, Sparking Divergent Views in the Community

According to Uniswap’s official information, Uniswap Labs has recently proposed activating protocol fees on some v4 liquidity pools. The plan is to expand the UNIfication fee reform, which had previously been approved through DAO member voting, to the exchange’s latest and most flexible pool architecture.

The proposal is currently in the Snapshot voting stage (July 7 to 12), while on-chain voting is expected to begin in the week of July 13.

In response to this news, the UNI token rose by about 10.5% over the past 7 days to $3.51, with a market cap of approximately $2.2 billion.

At present, these protocol fees are already live in v2 and v3 pools across 11 chains. Uniswap also set a new daily UNI burn record of 186,000 UNI within 24 hours before the proposal was announced.

Given v4’s infinite fee tier feature, the proposal introduces a V4 fee controller system. It aims to classify pools into “families” based on their specific characteristics through the coordinated work of two contracts—V4FeePolicy and V4FeeAdapter—and to calculate fees according to the corresponding rules.

Specifically, the proposal creates three “family” categories: non-hooks static fee pools, continuous liquidation auction pools, and aggregator hooks pools, and sets different fee calculation rules for each category.

However, the proposal was also opposed by Panoptic founder Guillaume Lambert, who believes the UNIfication fee function “carries the risk of choking the protocol” and could force liquidity providers (LPs) to switch to other automated market makers (AMMs).

But supporters argue that, compared with configuring individual pools one by one, this proposal is a more scalable approach. They also praised the rollout method, which will be implemented step by step within specific categories.

#UniswapV4 # Protocol fees