Uniswap Founder Says v4 Fee Leaves LP Earnings Intact
Uniswap is a decentralized exchange where liquidity providers, or LPs, supply assets to trading pools and earn swap fees in return. Its v4 architecture allows more flexible fee settings and customized pool logic. How a protocol charge is structured matters because it can affect LP returns, liquidity retention and execution quality, while also determining how Uniswap captures value for UNI through the fee-funded token burn introduced under its UNIfication overhaul.
Following governance voting from July 19 to July 26, 2026, over activating fees for selected v4 pools, founder Hayden Adams rejected claims that the change takes income from LPs. He said the 5-basis-point protocol fee is additive to the existing 30-basis-point LP charge, bringing the trader’s total fee to 35 basis points. The protocol’s share is therefore about 14% of the total, while LPs continue to receive the full 30 basis points they were already earning.
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The history behind this eventUniswap Opens On-Chain Vote on v4 Fee Switch, L2 Expansion
Uniswap's fee switch has long been a focus of the decentralized finance sector. The mechanism determines whether the decentralized exchange protocol charges traders a fee and directs the proceeds to token holders or burns them. The change is critical because it would directly reshape UNI's tokenomics, turning it from a pure governance token into an asset capable of capturing tangible value.
The Uniswap community has formally opened on-chain voting on two proposals: a “v4 fee switch” and an extension of v2/v3 fees to the Robinhood Chain L2. If approved by the end of July 2026, 100% of the new protocol fees would flow directly into a burn pool, accelerating UNI's deflation and significantly reducing its estimated circulating supply.
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