Uniswap Pushes UNI Buyback Expansion Into Version 4
Uniswap token holders overwhelmingly backed a proposal to extend the UNI buyback mechanism to selected v4 pools, with binding on-chain votes expected in July.
Uniswap governance is preparing to expand the protocol's fee collection and UNI buyback mechanism to selected Uniswap v4 pools, marking the next phase of value accrual for the decentralized exchange.
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. The on-chain votes will determine formal adoption and implementation.
The proposal targets three categories of v4 pools: static fee pools, Continuous Clearing Auction (CCA) pools that use auction mechanisms to capture order-flow value, and aggregator hook pools that 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 when parameters change.
The expanded framework builds on Uniswap’s existing fee-switch program, 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 and permanently remove them from circulation through burns.
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 behind only major stablecoin issuers. That level of activity has strengthened governance support for expanding fees, as higher revenue can increase the amount directed toward UNI buybacks if additional fee-generating pools are approved.
The governance process extends beyond activating protocol fees on Uniswap v4. Token holders will also vote on operational proposals including bridge infrastructure updates and fee configurations for additional networks such as Robinhood Chain, Avalanche, XLayer, MegaETH and Soneium.
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.
Source: Uniswap