Unichain brings 468 million annual revenue to Uni, an article analyzing the mechanism will benefit or harm which individuals.

Earlier, we introduced that leading decentralized exchange Dex Uniswap announced the launch of Layer 2 Unichain designed for DeFi, utilizing the trusted execution environment (TEE) technology to create Rollup-Boost for DeFi, providing a faster and more decentralized trading environment. Unichain's technological features will to a large extent internalize the Ethereum MEV problem within applications. Additionally, Unichain's consensus mechanism is PoS, which means significant empowerment for Uni token holders. The founder of DeFi Report pointed out that Uni holders will receive over $468 million in annual income as a result.

Uniswap's launch of Layer 2 designed for DeFi, data reveals Unichain may lead to increased inflation on Ethereum

Michael Nadeau: Unichain Brings $468 Million in Annual Revenue to Uni Holders

Reports indicate that Uniswap used to earn $500 million annually on the Ethereum mainnet, with a significant portion of these fees potentially being collected by validators staking Uni tokens.

Michael Nadeau, founder of DeFi Report, stated in a post that Uniswap generated nearly $1.3 billion in transaction and settlement fees across 5 chains last year. However, the protocol and token holders captured no value at all, which is why the Uni token has been sarcastically dubbed an "air token." 100% of these fees flow to liquidity providers, Ethereum validation nodes, MEV bots, and L2 sequencers, but with the introduction of Unichain, this is all about to change.

Michael Nadeau divides the revenue into three parts:

1. Settlement Fees: Uniswap Labs and UNI token holders will receive settlement fees upon the launch of Unichain, as opposed to the $3.68 billion annually paid to Ethereum validators by the protocol.

2. MEV Revenue: Uniswap is able to capture MEV revenue, which is expected to account for about 10% of Uniswap's total fees, or $100 million last year. This is because Unichain owns all validators on the network, rather than allowing Ethereum validation nodes to extract MEV.

3. Liquidity Providers: Liquidity providers will continue to receive 100% of trading fees and, when Unichain goes live, will also be able to participate in settlement and MEV.

Further Proof of Ethereum Inflation Speculation, Who Benefits from Unichain's Revenue?

So, who are the beneficiaries of this transformation? Who loses out? Michael Nadeau states that Uniswap, Uni holders, liquidity providers, and Optimism all benefit.

Uniswap Labs profits by acquiring network settlement fees and MEV, while UNI token holders participate in settlement fees and MEV through staking. Uniswap liquidity providers engage in settlement and earn MEV income through staking. Of course, as a provider of OP Stack technology, Optimism will receive a certain percentage of settlement and MEV fees from Unichain.

Where there are winners, there are also losers. So, who stands to lose from this? Michael Nadeau points out that Ethereum validators will lose the $3.68 billion settlement fees from Uniswap. ETH token holders will see a reduction in ETH settlement fees and gas fee burning issues, confirming our previous views. Lastly, other Layer 2 chains, including Arbitrum and Base, will lose out on Unichain's settlement and MEV fee income.