How Much Will The Fee Switch Pump $UNI?
Let's first look at Uni V2:
- $503m in total fees YTD ($320m on ETH mainnet)
- $50b in the last 30 days as volume
If we consider that 1/6th of these fees will go as protocol revenue, we're looking at $53m as of the protocol fees generated in 2025 based on ETH mainnet activity.
Let's also look at Uni V3
- $671m in total fees YTD ($381m on ETH mainnet)
- $71b in 30d volume
If we consider as the forum post states to consider 80% of the ETH mainnet pools only to begin with. For todays purpose I'm going to take some assumptions since smaller fee tier pools have 1/4 fee and higher pools have 1/6 fee tier.
Estimating this, we can approximately say that year to date V3 would have generated $61m in protocol fees.
In total from V2 and V3 alone, we're looking at $114m in total fees that would have been earned year to date (still 6 weeks of the year left).
That is also without:
- The rest 20% of Uni v3
- All fees from chains outside of ETH mainnet, particularly Base which generates almost as much as ETH mainnet
- Fees from Uni V4 volume
- Protocol fee discount auctions
- UniswapX
- Agg hooks
- Unichain sequencer revenue
$UNI trades at $8.20, an $8.2b FDV
Hayden also suggested burning 100 million tokens, equivalent to $800m+ at current prices.
In total that gives us:
$UNI - $8.20
Market cap - $5.3b
FDV - $7.4b (after 100m UNI is burned)
$130m annualised revenue to buy back and burn $UNI
Buying back 2.5% of the supply every year.
Good buy?
P/E Ratio of 40 but with many other revenue growth systems in place, this number can go much lower.
For the first time ever, the $UNI token looks attractive as a token to hold.
Questions to ask
- Will LPs remove their liquidity as other venues become more attractive? Aerodrome, Curve, Fluid, Hyperliquid spot and others for example
- Volume in 2025 has been abnormally higher than the last few years (Bull v Bear Market) and this has resulted in significantly higher fees
- How do buy backs actually happen? Like Hyperliquid or some other method?
Today, I’m incredibly excited to make my first proposal to Uniswap governance on behalf of @Uniswap alongside @devinawalsh and @nkennethk
This proposal turns on protocol fees and aligns incentives across the Uniswap ecosystem
Uniswap has been my passion and singular focus for the past 8 years. What started as a small side project is now global financial infrastructure powering thousands of applications with ~$1.8 trillion in annual trading
UNI launched in 2020, but for the past 5 years Labs has been unable to meaningfully participate in Uniswap governance, and has been greatly restricted in the ways it can build value for the Uniswap community. That ends today!
This restriction was in great part due to a hostile regulatory environment that cost thousands of hours and tens of millions in legal fees. Fortunately, the regulatory environment has shifted
This proposal comes from a strong desire to see the Uniswap protocol win as the global decentralized exchange for tokenized value
At a high level, the proposal:
1. Turns on protocol fees and uses them to burn UNI
2. Sends @unichain sequencer fees to the UNI burn
3. Burns 100M UNI from the treasury representing the protocol fees that could have been burned if fees were turned on at token launch
4. Introduces Protocol Fee Discount Auctions, a new way to improve LP outcomes and internalize MEV to the protocol
5. Introduces "aggregator hooks” which will turns Uniswap v4 into an onchain aggregator that collects protocol fees on external liquidity sources
6. Focus Labs on driving protocol growth and adoption, including a contractual agreement to only pursue initiatives that align with Uniswap governance interests
^ As part of this, Labs will stop collecting fees on its interface, wallet, and API to supercharge distribution and adoption of the Uniswap protocol
7. Moves Foundation employees to Labs with a shared goal of accelerating protocol growth, under a growth fund from the treasury
8. Move governance-owned Unisocks liquidity to v4 on Unichain and burn the LP position
I believe Uniswap protocol can be the primary place tokens are traded. This proposal sets the stage for the next decade of its growth
@Uniswap will ship relentlessly over the coming years and supercharge the ecosystem of developers, LPs, and traders building on top
I'm so grateful to the community that has made this all possible, and excited for what's next
🦄
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