The Uniswap toll switch pilot will likely continue

• The pilot will run for 120 days if the vote is successful
• At the time of writing, 3 million UNI token votes have been cast in favor of implementing the pilot

A proposal to change the fees charged by decentralized crypto exchange Uniswap has been adopted with overwhelming support from Uniswap’s community governance.

In the meantime, a coordination phase for a so-called consensus check to start a pilot version of the fee implementation has begun.

The pilot proposes that the test parameters be set at 1/10th or 10% of the selected liquidity pools – meaning a 10% fee is charged on that percentage of the selected pool, the lowest percentage permitted by the Code.

Pools chosen for the pilot include 0.05% DAI-ETH, 0.3% ETH-USDT, and 1% USDC-ETH.

All assets accruing from the pilot will remain in the log pending Uniswap governance agreement on where to allocate those funds – details of revenue distribution have not yet been announced.

Voting to implement the pilot began on August 4th and will end on August 9th at 6:00 p.m. ET. As of publication, three million UNI token votes have been cast in favor of the pilot, with only 46 UNI votes against.

If passed, the public test would run for 120 days before being shut down.

Although a majority of voters support the pilot, not all community governance members are enthusiastic about the timing of the proposal.

Brian Park, a community member known as BJP3333, told Blockworks that implementing the fee switch could potentially hurt Uniswap’s position in the currently highly competitive DEX market.

“Although Uniswap currently has that lead, that could change in the next year or so,” Park said. “Curve v2, Sushi Trident, Quickswap and Shell Protocol are all developing their own concentrated liquidity AMMs [automated market makers].”

And monetizing fees right now might be a little early.

“Let’s not get so complacent with this suggestion that you are now going to try to monetize fees at the expense of liquidity providers,” he said. “The dip in their profit range which could potentially see them go at the time of the DEX [decentralized exchange] Space is very competitive.”

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• Bessie Liu

  blocks

  reporter

  Bessie is a New York-based crypto reporter who previously worked as a tech journalist for The Org. She earned her Masters in Journalism from New York University after working as a management consultant for over two years. Bessie is originally from Melbourne, Australia. You can contact Bessie at [email protected]

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