Uniswap Expands Protocol Fees and UNI Burning to BNB Chain, Polygon, and Celo

iconCryptoBriefing
Share
Share IconShare IconShare IconShare IconShare IconShare IconCopy
AI summary iconSummary

expand icon
Uniswap brings protocol update to BNB Chain, Polygon, and Celo, expanding on-chain news coverage. A May 16 governance proposal activates protocol fees and UNI burning on three new chains, raising the total to 13. Fees are set at 1/5 of the pool fee, with tokens sent to a burn address. Celo’s activation fixes a prior error, while BNB Chain and Polygon use new TokenJar infrastructure. The proposal used an expedited process under the UNIfication framework.

Uniswap is pushing its protocol fee system to three more blockchains. A governance proposal posted on May 16 seeks to activate fee collection and UNI token burning on BNB Chain, Polygon, and Celo, bringing the total number of chains with live protocol fees to 13.

The move is part of a phased rollout that started on Ethereum mainnet in late December 2025. Since then, fees have already gone live on nine additional chains including Arbitrum, Base, OP Mainnet, Soneium, X Layer, Worldchain, and Zora. The latest expansion targets three of the most active alternative networks in DeFi.

How the fee structure works

Protocol fees on the new chains are set at 1/5 of the pool fee. In English: if a liquidity pool charges a 0.30% swap fee, the protocol takes 0.06% off the top. That ratio mirrors what’s already running on the other integrated chains.

Advertisement

Fees are routed into what Uniswap calls TokenJars on each respective chain. From there, the collected UNI tokens get bridged back to Ethereum mainnet and sent to the 0xdead address, a well-known burn address that permanently removes tokens from circulation.

The Celo activation is actually a fix. A prior governance proposal, numbered #94, contained a configuration error that prevented fees from going live on the network. This new proposal corrects that mistake while simultaneously onboarding BNB Chain and Polygon with fresh TokenJar infrastructure.

Governance moved fast on this one

The proposal bypassed the usual Request for Comment stage entirely. Under a framework called UNIfication, the expansion qualified for an expedited governance process: a five-day Snapshot vote followed by an onchain vote. No prolonged debate period required.

Community response has been strongly supportive during the Snapshot voting process.

What this means for investors and traders

For liquidity providers on BNB Chain, Polygon, and Celo, the 1/5 fee take means a slightly smaller share of swap fees flowing to their pockets. On a pool with a 0.30% fee, LPs would receive 0.24% instead of the full amount.

The cross-chain bridging component introduces its own set of risks. Bridge exploits have been among the most costly attack vectors in DeFi history. While the TokenJar and bridging architecture has been operating on other chains without incident, every new chain integration expands the attack surface.

Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information. Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.