The Uniswap DAO has introduced Proposal 96, titled “Protocol Fee Expansion: Vote 3,” which seeks to extend its UNIfication initiative—activating protocol fee collection and UNI token burning—to BNB Chain, Polygon, and Celo. The proposal went live on the Uniswap governance portal and voting is scheduled to begin May 24, 2026, following the expedited governance framework approved under the original UNIfication overhaul in December 2025.
If passed, the expansion would replicate the same fee-to-burn infrastructure already operating on Ethereum mainnet and eight other chains (including Arbitrum, Base, and OP Mainnet) that was activated in early March 2026. The core mechanism relies on two on‑chain contracts: TokenJar, which collects protocol fees on each chain, and Firepit, where searchers burn an equivalent value of UNI to withdraw those fees. The burned tokens are then bridged back to Ethereum mainnet and sent to the 0xdead address.
For BNB Chain and Polygon, the proposal would set the v2 factory’s fee recipient to the local TokenJar and transfer ownership of the v3 factory to a V3OpenFeeAdapter contract, using Wormhole’s Native Token Transfer for cross‑chain messaging. Celo’s integration is more complex: a previous attempt (Proposal 94) failed due to a configuration error. The new vote corrects this by requiring the transfer of the v2 feeToSetter role from Wormhole to a DUNI‑owned CrossChainAccount and handing v4 PoolManager ownership to that same account, while utilizing Celo’s OP‑stack architecture.
Protocol fee levels mirror those already active elsewhere. On v2 pools, the existing 0.3% LP fee splits into 0.25% for liquidity providers and 0.05% as a protocol fee. For v3 pools, the V3OpenFeeAdapter sets uniform protocol fees by LP fee tier without per‑pool governance action. The UNIfication initiative also included a retroactive burn of 100 million UNI from the treasury, executed as part of the December 2025 vote.
Uniswap currently holds $3.3 billion in total value locked across more than 40 chains, with cumulative fees reaching $5.57 billion and annualized fees of roughly $477 million. BNB Chain accounts for $117 million TVL and $3.53 million in 30‑day fees, while Polygon holds $76.5 million TVL and $1.02 million in fees. Together with Celo, these three chains contribute about $198.37 million in TVL that currently generates no protocol revenue for UNI holders. The previous fee burn rollout on Ethereum mainnet sparked a UNI price rally from $4.95 to $9.25 in late 2025, though the token now trades at $3.30, down 92.7% from its May 2021 all‑time high of $44.97.
If Proposal 96 passes, UNIfication will have expanded protocol fee collection and token burns to 11 chains in addition to Ethereum mainnet, potentially increasing buying pressure on UNI and deepening deflationary dynamics.
