Uniswap Labs and the foundation have proposed charging a protocol fee and destroying 100 million UNI tokens.

According to an article by Uniswap founder Hayden Adams, he, along with team members Devin Walsh and Kenneth Ng, submitted a new proposal to Uniswap governance, planning to officially launch a protocol fee mechanism and use the fees for UNI burning, in order to unify the incentives for the protocol and token holders. The main points of the proposal include: 1. Enabling protocol fees and using the revenue for UNI burning; 2. Incorporating Unichain sequencer fees into the UNI burning mechanism; 3. Burning 100 million UNI from the treasury in a single transaction to represent the outstanding portion of protocol fees that have not been activated since token issuance; 4. Introducing a "protocol fee discount auction" mechanism to optimize LP returns and internalize MEV; 5. Introducing an aggregator hook to allow Uniswap v4 to aggregate external liquidity on-chain and collect protocol fees; 6. Contractually restricting Labs to focus solely on growth plans aligned with community governance interests and ceasing fee collection in the interface, wallet, and API; 7. Transferring foundation staff to Labs and establishing a growth fund to accelerate protocol expansion; 8. Migrating governance-held Unisocks liquidity to Unichain v4 and burning the LP position. Hayden Adams stated that this proposal marks a new growth phase for Uniswap, aiming to make the protocol a major trading venue for tokenized assets globally and reshape the long-term value loop through UNI burning and incentive mechanisms.