Uniswap’s UNI jumps 15% as governance vote to expand fee switch gains momentum

CoinDesk

by Sam Reynolds

February 26, 2026

AI-Generated Deep Dive Summary

Uniswap’s UNI token has surged by approximately 15% over the past 24 hours, outpacing gains in Bitcoin (up 4.7%) and Ethereum (up 8.5%). This rally is driven by growing momentum behind a Uniswap governance proposal aimed at expanding its fee collection mechanism across eight additional blockchain networks. If approved, this initiative would automate fee collection for all v3 pools and potentially add $27 million in annualized revenue. The move marks a significant shift in Uniswap’s token economics, as it could further strengthen the protocol’s ability to generate income through UNI buybacks and burns. The proposed changes aim to streamline Uniswap’s fee system by replacing the current pool-by-pool activation model with a tier-based v3 system that automatically enables fees across all liquidity pools. This new approach would reduce manual intervention while enhancing revenue capture, particularly for less liquid trading pairs on long-tail chains. Since the initial phase of the fee switch was rolled out late last year, Uniswap has already burned over $5.5 million worth of UNI tokens, equating to roughly $34 million annually at current rates. This mechanism redirects a portion of the platform’s transaction fees from liquidity providers to the protocol treasury, which is then used for UNI buybacks and treasury growth. The proposed expansion could significantly boost Uniswap’s revenue streams, potentially adding $27 million in annualized revenue on top of the existing $34 million. However, the long-term impact will depend on whether this shift enhances Uniswap’s competitiveness for liquidity on layer-2 networks. While the platform has seen growing trading volume and revenue generation since fees were reintroduced last year, the new changes could

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Originally published on CoinDesk on 2/26/2026