Uniswap is considering turning on the Fee Switch

Uniswap is considering a proposal to implement fees on many of its liquidity pools to boost its treasury and provide rewards to its native token holders.

As one of the largest platforms in the DeFi ecosystem, with a 70% market share, the move could set a precedent for other similar projects. Uniswap v2 has nearly $1.2 billion in total value locked, while Uniswap v3 has around $2.9 billion. The fee collection mechanism, allocation, and token usage are still being debated, with details to be ironed out in community discussions before a formal vote.

This isn’t the first time community members have called to activate fee switches on Uniswap liquidity pools. Last summer, a proposal to switch on fees became a point of contention within the uniswap community. The proposal ultimately failed to get enough traction, with opponents voicing fears the move could have broader tax implications for the protocol and its users.