Uniswap Governance Considers Extending Protocol Fees to Circle's Arc Layer 1
A temperature check proposes activating v2, v3, and v4 protocol fees on Arc, routing proceeds through Wormhole to burn mainnet UNI.
At a glance Proposed
- What happened
- A Uniswap governance temperature check proposed expanding v2, v3, and v4 protocol fees to Circle's Arc Layer 1 network.
- Why it matters
- If passed, trading fees collected on Arc will be routed via Wormhole Native Token Transfers to burn canonical UNI on Ethereum.
- Who is affected
- Uniswap liquidity providers and traders on Arc, UNI tokenholders, and cross-chain MEV searchers.
- What's next
- The proposal heads to an onchain vote following a successful five-day Snapshot temperature check.
- Primary source
- gov.uniswap.org: [Temp Check] Protocol Fee Expansion: Arc
Key points
- A governance temperature check proposes turning on Uniswap v2, v3, and v4 protocol fees on Circle's Arc Layer 1 network 1.
- Accumulated Arc fees will be routed through Wormhole NTT contracts to burn canonical UNI on Ethereum mainnet 1.
- The rollout uses Uniswap's expedited process, bypassing RFC stage for a five-day Snapshot vote before an onchain ballot 1.
A new Uniswap governance proposal seeks to activate protocol fees across Uniswap v2, v3, and v4 deployments on Arc, a Layer 1 network launched by Circle on Sept. 16, 2026 1. The temperature check, published on the Uniswap governance forum, outlines plans to incorporate Arc into the decentralized exchange's automated fee collection and token-burning mechanism 1.
The initiative follows earlier fee rollout proposals—numbered 93 through 96, 99, and 100—and utilizes an expedited governance framework approved under UNIfication 1. That mechanism allows parameter changes to skip the formal Request for Comments (RFC) phase and proceed directly to a five-day Snapshot vote before moving to an onchain tally 1. Since protocol fees were first enabled on Ethereum mainnet in late December of last year, the system has expanded across eleven other networks, including Arbitrum, Base, Polygon, and BNB Chain 1.
Cross-Chain Burning Architecture
Under the proposed technical architecture, fee collection on Arc mirrors implementations already deployed on Polygon and BNB Chain 1. Assets gathered from trading fees accumulate in an onchain "TokenJar" on Arc 1. External arbitrage searchers claim these pooled fees by submitting synthetic $UNI minted via Wormhole’s Native Token Transfer (NTT) system 1.
Arc's releaser contract then directs the synthetic tokens to an NTT manager for burning on Arc 1. A cross-chain Wormhole message relayed to Ethereum triggers the release of locked, canonical $UNI, which is subsequently directed to the mainnet burn address 1. Because Ethereum's NTT system is managed by the protocol's Timelock, registering Arc's contracts as authorized peers requires an explicit onchain governance vote 1.
If approved by Uniswap tokenholders, the proposal will establish Arc’s fee collection parameters and set protocol fee controllers across Uniswap v2, v3, and v4 pools on the network 1. A preliminary Snapshot vote will determine whether the plan advances to an onchain vote 1.
Sources
- [1] [Temp Check] Protocol Fee Expansion: Arc — gov.uniswap.org, October 13, 2026
Written by Basis Desk's newsroom system from the primary sources above and machine-verified against them before publication. Market figures marked "at the time of writing" come from live exchange data. Report an error: corrections@basisdesk.news · corrections policy.
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