---
title: "Uniswap Governance Considers Extending Protocol Fees to Circle's Arc Layer 1"
description: "A temperature check proposes activating v2, v3, and v4 protocol fees on Arc, routing proceeds through Wormhole to burn mainnet UNI."
url: https://basisdesk.news/news/uniswap-governance-protocol-fee-expansion-arc
published: 2026-10-13T02:31:23.282Z
modified: 2026-10-13T02:31:23.282Z
section: DeFi
author: Basis Desk Newsroom (AI-generated, source-verified)
sentiment: neutral
tickers: [UNI]
tags: [Uniswap, Circle, Arc, Governance, Wormhole, Token Burn]
license: Quote with attribution to Basis Desk (basisdesk.news). Not financial advice.
---

# 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

- **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.
- **Status:** proposed
- **Primary source:** [[Temp Check] Protocol Fee Expansion: Arc](https://gov.uniswap.org/t/temp-check-protocol-fee-expansion-arc/26287) — gov.uniswap.org

## 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].

## Editorial remark

- **Context:** Uniswap initiated protocol fee activations in late December of last year on Ethereum mainnet and has since expanded fee collection across eleven additional chains using TokenJar contracts.
- **Impact:** Arc liquidity pools across v2, v3, and v4 will allocate a portion of trading fees to a burn mechanism, allowing searchers to buy fee inventory by burning synthetic UNI.
- **Watch:** The outcome of the temperature check Snapshot vote and the deployment of remaining fee infrastructure contracts ahead of an onchain vote.

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](https://gov.uniswap.org/t/temp-check-protocol-fee-expansion-arc/26287) — gov.uniswap.org, 2026-10-13

---
Basis Desk Newsroom · AI-generated, source-verified · https://basisdesk.news/about/how-we-use-ai