Uniswap Labs has officially removed all interface fees previously charged on the Uniswap web app, mobile wallet, and API from their front-end products. This change took effect around December 27–29, 2025, as part of the “UNIfication” governance proposal execution.
The UNIfication proposal passed overwhelmingly on December 25, 2025— 99.9% approval. After a short timelock, on-chain execution included: Burning 100 million UNI tokens from the treasury worth ~$596M at the time.
Activating the long-awaited protocol fee switch often called the “back-end” or “backend” fees on Uniswap v2 pools and select high-volume v3 pools on Ethereum mainnet. A portion of trading fees now accrues to the protocol like 0.05% on v2, fractions on v3, which is used programmatically to burn more UNI over time.
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Setting all Uniswap Labs front-end/interface fees to zero, shifting focus from app-layer monetization to protocol-level growth. Uniswap Labs announced this directly on X: December 27: “UNIfication has officially been executed onchain, Labs interface fees are set to zero…” December 28: “All interface fees have been set to zero across Uniswap apps and API”. December 29: Confirmation of no more interface fees.
This makes swapping on official Uniswap products completely fee-free at the interface level aside from gas and protocol/LP fees, while the newly activated protocol fees create deflationary pressure on UNI supply. The move aligns incentives toward protocol sustainability and has been positively received in the community, with UNI holding gains post-activation.
The removal of all interface fees on the Uniswap web app, mobile wallet, and API combined with the activation of protocol fees marks a pivotal shift in Uniswap’s economics, governance, and competitive positioning. This stems from the overwhelmingly approved UNIfication proposal executed on-chain.
For Users and Traders
Cheaper swapping on official Uniswap products: No more interface fees means swaps are effectively free at the front-end level only gas + LP/protocol fees apply. This reduces friction, encourages higher volume, and makes the official app/wallet more attractive vs. third-party aggregators.
Slightly higher costs in some pools: Protocol fees now take a cut like 0.05% on v2 pools, 1/4 or 1/6 on select v3 pools, but this is minimal and only on activated pools initially v2 all + high-volume v3 on Ethereum mainnet, covering 80–95% of fees. More user-friendly experience, potentially driving adoption and volume growth.
Deflationary pressure created: One-time burn of 100 million UNI ~$596M–$635M value, reducing supply by ~16%. Protocol fees flow into a mechanism that programmatically burns UNI via “TokenJar” and “Firepit” contracts. Unichain sequencer fees also contribute after costs.
Value accrual shift: UNI transitions from a pure governance token to one directly tied to protocol revenue and usage. Higher trading volume = more burns = potential scarcity-driven appreciation. Price impact so far: UNI surged 20–30% during/after voting but has stabilized around $5.90–$6.40 post-burn minor pullback from highs. Long-term bullish if volume sustains.
Reduced earnings in activated pools:v2: LP fees drop from 0.30% to 0.25% protocol takes 0.05%. v3 select pools: Protocol takes 1/4 (low-fee tiers) or 1/6 (higher tiers) of LP fees. Some LPs may migrate to non-fee pools, other DEXs, or v4 not yet activated if yields drop significantly. Community/governance will monitor and may adjust.
Uniswap’s dominant liquidity and brand may retain most LPs; higher overall volume from zero interface fees could boost total fees earned. Labs drops interface revenue previously ~$125M/year to focus on protocol growth. Funded by a new annual growth budget for development, integrations, and expansion.
Foundation teams transition to Labs for streamlined efforts like v4 hooks, Unichain, aggregators. Positions Uniswap as a “public good” at the front-end while capturing value sustainably at the protocol level. Aligns with DeFi maturity and reduced regulatory concerns.
Precedent for mature protocols: Shows DAOs can execute complex, value-accruing changes fee switches, burns after years of debate. Potential volume flywheel: Zero front-end fees + deflationary UNI could attract more traders/developers, increasing dominance.
Short-term LP outflows if fees deter providers; execution monitoring needed for adjustments. Analysts estimate ~$130M annual burn potential at current volumes. Positive reception: Community largely views this as aligning incentives for long-term sustainability, with UNI holding gains amid broader market conditions.
This makes Uniswap more accessible and user-focused while creating real economic utility for UNI through deflation. Early data shows burns already underway beyond the initial 100M. The true test will be sustained volume and LP retention in 2026.