Uniswap starts charging "interface fees"! Trading specific tokens incurs a 0.15% fee, limited to front-end users.

As early as July last year, there was a proposal on the Uniswap governance forum to convert some of the LP liquidity providers' fee profits into protocol revenue, but the proposal did not pass smoothly. However, Uniswap seems determined to increase protocol revenue sources to sustain operations, so starting from tomorrow, there will be interface fees charged to Uniswap users.

I work in crypto because of the immense positive impact I believe it can have on the world, removing gatekeepers and increasing access to value and ownership.

I’m proud of the ways @Uniswap Labs has contributed to that effort and want to make sure we’re creating sustainable…

— hayden.eth 🦄 (@haydenzadams) October 16, 2023

Uniswap Considers Adding Protocol Revenue Streams

According to previous reports, in the discussion of the Uniswap fee switch proposal, it was proposed to allocate 10-25% of LP fee profits as protocol revenue to promote the overall development of the protocol.

However, the proposal did not receive enough support from users in the vote in May this year, with 45% of UNI tokens choosing not to implement this mechanism, and the fee switch proposal was thus abandoned.

Uniswap to Start Charging 0.15% Front-end Interface Fee

However, perhaps due to the market being too quiet, Uniswap founder Hayden Adams announced today that starting tomorrow, Uniswap will charge users a 0.15% Swap Fee conversion fee, which is limited to specific tokens and only for users using the Uniswap front-end interface on the website and mobile wallet.

Hayden emphasized that the conversion fee is different from the fee switch, and the implementation of the fee switch depends on whether the community governance proposal is approved.

As the conversion fee is only charged to users using the Uniswap front-end interface, Hayden also referred to this fee as the "Interface Fee." By collecting this fee, Uniswap will have enough funds to continue researching, developing, and improving its products.

I work in crypto because of the immense positive impact I believe it can have on the world, removing gatekeepers and increasing access to value and ownership.

I’m proud of the ways @Uniswap Labs has contributed to that effort and want to make sure we’re creating sustainable…

— hayden.eth 🦄 (@haydenzadams) October 16, 2023

According to the Uniswap Help Center explanation, only the following tokens will be charged the interface fee, and it will be deducted from the exchanged tokens.

In addition, there are some exceptions to the charging of the interface fee:

1. Both the pre-exchanged and post-exchanged tokens must be included in the list above to be charged the fee.
2. No fees will be charged for stablecoin exchanges.
3. No fees will be charged for exchanges between ETH and WETH.

If there are any concerns about the fee, after this policy officially goes into effect tomorrow, users will also be able to see clearly how much the interface fee is when trading in the exchange interface, as shown in the example below.