Uniswap Pushes UNI Buyback Expansion Into Version 4

Uniswap governance is moving to extend the protocol's fee collection and UNI buyback mechanism to selected Uniswap v4 pools, marking the next phase of one of DeFi's largest value-accrual initiatives.

Summary:

Uniswap token holders overwhelmingly backed a proposal to expand protocol fees to selected Uniswap v4 pools.
Binding on-chain governance votes are expected to begin during the week of July 13.
The proposal would extend the existing UNI buyback-and-burn framework to parts of Uniswap v4.
The move comes as Uniswap generates roughly $5.2 million in daily protocol fees, reinforcing its position among DeFi’s largest revenue-generating protocols.

Governance Vote Advances Fee Expansion

Uniswap is preparing to expand its protocol fee framework after governance participants overwhelmingly supported a proposal to activate fees across selected Uniswap v4 liquidity pools.

A Snapshot “temperature check” that concluded on July 12 received roughly 93% support, clearing the way for binding on-chain governance proposals expected to begin during the week of July 13.

Unlike Snapshot polls, which measure community sentiment, the upcoming on-chain votes will determine whether the proposal is formally adopted and implemented.

Because of technical limitations within Uniswap’s GovernorBravo governance system, the rollout will be divided into several proposals covering different blockchain networks and protocol components.

Which Pools Would Be Affected

The proposal does not introduce protocol fees across every Uniswap v4 pool.

Instead, governance is targeting three categories designed to generate sustainable protocol revenue:

Static fee pools
Continuous Clearing Auction (CCA) pools, which use auction mechanisms to capture order-flow value
Aggregator hook pools, which route liquidity through aggregation layers

To support v4’s modular architecture, developers introduced two new contracts – V4FeePolicy and V4FeeAdapter – allowing governance to adjust protocol fee settings without requiring entirely new deployments whenever parameters change.

How the UNI Buyback System Works

The proposal builds on Uniswap’s existing fee-switch program, which is already active across 11 blockchain networks, including Ethereum, Arbitrum, Base and Polygon.

Under the current system, protocol fees are collected and routed into dedicated TokenJars, where the revenue is used to purchase UNI tokens from the open market before permanently removing them from circulation through token burns.

Expanding the mechanism to selected v4 pools would increase the number of revenue-generating markets contributing to that process.

For UNI holders, the proposal is significant because it links protocol usage more directly to token economics rather than relying solely on governance participation.

Protocol Revenue Continues to Grow

The governance proposal arrives as Uniswap continues generating some of the highest fee revenue in decentralized finance.

According to Uniswap founder Hayden Adams, the protocol currently generates approximately $5.2 million in daily fees, placing it among the largest revenue-producing blockchain protocols and behind only a handful of major stablecoin issuers.

Uniswap is generating $5.2m in daily fees right now

Above any protocol other than USDC + USDT and far more than Hype, Pump, etc https://t.co/3xIwOIq4GJ pic.twitter.com/JZlngahI0a

— Hayden Adams 🦄 (@haydenzadams) July 12, 2026

That level of activity has strengthened governance support for expanding protocol fees, as higher revenue can increase the amount directed toward UNI buybacks if additional fee-generating pools are approved.

More Than a Fee Proposal

The upcoming governance process extends beyond activating protocol fees on Uniswap v4.

Token holders will also vote on several operational proposals, including bridge infrastructure updates and fee configurations for additional networks such as Robinhood Chain, Avalanche, XLayer, MegaETH and Soneium.

The multi-proposal approach reflects the growing complexity of governing a protocol that now operates across numerous Layer 1 and Layer 2 ecosystems.

What UNI Holders Should Watch

The next milestone is the binding on-chain governance vote.

If approved, Uniswap would expand one of its primary value-accrual mechanisms into selected v4 pools, increasing the protocol’s ability to convert trading activity into UNI buybacks and token burns.

For investors, the outcome will provide an indication of how governance intends to balance protocol growth with long-term token value. More broadly, the proposal reflects a continuing trend across decentralized finance, where mature protocols are increasingly focusing on distributing economic value back to token holders rather than prioritizing expansion alone.

The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.