Uniswap (UNI) climbed 15% over the last 24 hours, according to CoinMarketCap, surpassing the increase in the prices of both Bitcoin and Ethereum, which rose by 4.7% and 8.5%, respectively, following a Uniswap governance vote aimed at increasing revenue on different layer-2 blockchains.
If the plan is approved, it will extend UNI’s “fee switch” to eight other networks and will introduce a new tier-based v3 system that automatically charges fees on all Uniswap liquidity pools. The fee switch is a feature that directs a percentage of trading fees from the liquidity providers to Uniswap’s treasury.
The funds in the treasury will then be used for UNI buybacks, burning, and overall growth, creating a direct relationship between Uniswap and the UNI token price.
Uniswap Burns Surge, $27 Million Revenue Boost
Analysts estimate the change will produce additional revenue of around $27 million on top of the $34 million already being used for UNI burns, making it one of the largest shifts to token economics since the reintroduction of fees for the Uniswap protocol last year.
The proposal for governance consists of two on-chain votes due to the limit on transactions. The proposal would activate the protocol fees on various blockchains and would introduce the new v3OpenFeeAdapter.
This would allow fees to be uniformly applied according to the tier of the pools rather than needing approval for each pool. This would make the process of fee collection automatic for new v3 pools.
Since the first phase of the fee switch rollout at the end of last year, Uniswap has burnt more than $5.5 million worth of UNI, which translates to an annualized burn rate of $34 million given its current trading volumes.
UNI rally is in line with the overall crypto market uptrend, Bitcoin 4-5%, Ethereum 8%. The long-term effect of the increased protocol fees depends on the competitiveness of the Uniswap protocol in layer-2 networks.
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UNI Holders See Revenue Growth
Finally, while Uniswap has been creating substantial trade volumes with little returns to its token holders over the years, it is now starting to earn some revenue. In fact, in Q1 2026, the protocol earned a gross profit of around $3.12 million, according to data by DeFi Llama. This is compared to almost zero earned previously.
If passed, the proposal would mark a major step in UNI’s evolution as a cross-chain revenue-generating platform, with UNI token burns increasingly linked to total trading activity across multiple networks, not just Ethereum.
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