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Uniswap founder says v4 fee switch leaves LP trading fees unchanged

Uniswap founder says v4 fee switch leaves LP trading fees unchanged

Proposal 100 activated Uniswap v4 protocol fees on seven networks on July 27, lifting daily revenue to about $325,000 as Hayden Adams and critics disputed the effect of higher all-in trading costs on liquidity providers.

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Fact Check
Hayden Adams' own verified X post directly states that v4 protocol fees are 'additive, not subtractive' and that 'LPs earning 30bp per swap still earn 30bp,' with the protocol fee being 5bp on a 30bp pool (~14% of total swap fees, 0% of prior LP earnings). This matches the claim precisely. The Cointelegraph report corroborates the framing as rebutting 'FUD and misunderstanding,' and the Uniswap Foundation governance proposal #100 confirms the v4 protocol fees were approved and activated (executed July 27, 2026). All claim elements are supported by primary sources.
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Summary

Uniswap activated protocol fees for selected v4 pools across Ethereum, Arbitrum, Base, BNB Chain, Polygon, OP Mainnet and Robinhood Chain on July 27 after Proposal 100 passed with about 46.6 million UNI in favor and 1.27 million against, above the 40 million UNI quorum. DefiLlama data cited in the sources showed protocol revenue rising to about $325,000 in the following 24 hours from roughly $114,000 a day earlier in July, while UNI rose about 10% to 12% to around $4.40. Hayden Adams said criticism that v4 cuts liquidity provider earnings misreads the design because the protocol fee is additive to pool fees rather than deducted from LP payouts, but critics including Gamma Strategies, Michael Egorov, Guillaume Lambert, Alexander Cutler and KoolKrypto argued that higher all-in trading costs could still reduce routing, volume, liquidity and LP economics.

Terms & Concepts
  • liquidity providers: Users who supply assets to trading pools and earn fees from swaps.
  • TokenJar: Contracts that accumulate Uniswap protocol fees and link claims to UNI burns under the UNIfication system.
  • basis point: One-hundredth of a percentage point.