The Uniswap community has just passed two important proposals with a budget of up to 165.5 million USD, paving the way for the robust development of Uniswap v4 and Unichain. Notably, the revenue sharing proposal for the fee switch is also about to become a reality after many years of waiting. This could completely change how the UNI token operates and significantly increase its utility value.
165 million USD budget: Where will the money go?
On March 19, 2025, the Uniswap Foundation announced that the community voted to approve a budget of 165.5 million USD to promote the ecosystem #uniswap . This amount will be allocated as follows:
🔹 95.4 million USD – Supporting projects built on Unichain (Uniswap’s new layer-2).
🔹 45 million USD – Providing liquidity for Uniswap v4, helping this decentralized exchange (DEX) maintain its leading position.
🔹 25.1 million USD – Operating expenses for the next 2 years for the Uniswap Foundation.
This decision is part of the 'Uniswap Unleashed' strategy, aimed at expanding the user base and improving liquidity. However, there is still much debate about why the community should fund Unichain when it is a product developed by Uniswap Labs without going through DAO.
Fee switch – A revolution for UNI?
Besides providing the budget, the Uniswap Foundation is also taking a step further in implementing a revenue sharing mechanism – also known as the fee switch.
📌 What is the fee switch? This is a proposal to allow sharing a portion of the transaction fees generated on Uniswap with UNI holders.
⏳ Why is it being implemented only now? Although proposed long ago, the fee switch has continuously been delayed due to legal risks in the US. However, #UniswapFoundation is building a revenue sharing mechanism and establishing a legal entity to represent UNI holders, helping to mitigate legal risks.
💰 Profit potential: According to DefiLlama, Uniswap is generating 2-4 million USD in swap fees daily, equivalent to 1 billion USD in annual revenue. If the fee switch is activated, UNI could become a real cash-generating asset, rather than just being used for governance voting as it has been since 2020.
Debate within the community
Although both proposals were passed with support rates above 80%, there are still many opposing opinions:
📌 Why should Uniswap DAO fund Unichain? Some members argue that Uniswap Labs has unilaterally developed this layer-2 without going through DAO, so the community should not be responsible for providing the budget.
📌 Is the personnel cost too high? Many also criticize the Uniswap Foundation for overspending on personnel, while the team leans more towards business development than technical skills.
Conclusion
With a budget of 165 million USD approved, Uniswap is ramping up its ecosystem expansion with Uniswap v4 and Unichain. However, what is most anticipated is the fee switch – if activated, it could turn UNI into a truly profitable token, providing a significant boost to the ecosystem. Although there is still much debate, this could be a turning point that helps Uniswap maintain its position as the leading DEX in the future. 🚀