Uniswap Vote Could Turn Arc Fees Into UNI Burns

Key Takeaways Arc fees are not burning UNI yet. The vote covers Uniswap v2, v3 and v4. Uniswap handled $56 million in daily Arc volume. Only the protocol share could support burns. Several fee-contract addresses were still pending. Arc gained Uniswap markets before gaining a UNI connection Uniswap launched v2, v3, v4 and UniswapX on Circle’s Arc blockchain when the network went live on September 16. Traders could immediately access Uniswap through its web app, wallet and API. The deployment expanded Uniswap’s distribution, but it did not make Arc trading economically relevant to UNI. Users do not need the token to swap assets, while the fees generated by those trades ordinarily go to liquidity providers. Arc was one of the developments surrounding UNI’s September 18 breakout, but its launch did not require traders to buy the token. The new governance proposal would add the supply-side connection that the original deployment lacked. If approved and implemented, the measure would activate protocol fees for Uniswap v2, v3 and v4 on Arc. A governance-set portion of the existing swap fees would then move into contracts designed to remove UNI from circulation. Uniswap dominated Arc’s first days of trading DefiLlama data showed approximately $80 million in tracked decentralized-exchange volume on Arc over 24 hours when checked on September 19. Arc activity at a glance $56 million Uniswap volume over 24 hours About 70% Share of tracked Arc DEX volume $344 million Total value locked across Arc Figures were checked on September 19 and may change as the network’s launch-period activity develops. V4 accounted for close to $40 million of Uniswap’s turnover, followed by approximately $15 million on v3 and $1 million on v2. During DefiLlama’s available launch-period window, the three versions recorded about $264 million of Arc’s $276 million in tracked DEX volume. The figures show that Uniswap dominated Arc’s opening activity. They do not establish whether that turnover will continue after the network’s first week. Arc had been live for only three days, leaving too little history to separate recurring demand from launch-related trading. How Arc fees could become a UNI burn Only part of each swap fee would go to the protocol The proposal would not introduce a second charge on top of Uniswap’s normal trading fee. It would redirect a governance-set portion of the existing fee from liquidity providers to protocol-controlled collection contracts. Under Uniswap’s published fee structure, a v2 trade with a total fee of 0.30% can allocate 0.25% to liquidity providers and 0.05% to the protocol. V3 uses different divisions depending on the pool’s fee tier. V4 requires a separate policy because its pools can use hooks and dynamic fees.