Proposal Spec

If this proposal passes, it will execute ten transactions:

/// Enable fees on Soneium, XLayer, Celo, Woldchain, and Zora. For each chain:

/// Set the owner of the V3 Factory to the V3OpenFeeAdapter
V3_FACTORY.setOwner(address(v3OpenFeeAdapter));

/// Set the recipient of V2 protocol fees to the TokenJar
V2_FACTORY.setFeeTo(address(tokenJar));

Because these transactions are crosschain, governance front ends may not decode them correctly. We recommend reviewing the Seatbelt simulation report to confirm their validity. Three other things to note:

• Soneium and XLayer deployments are owned by DUNI's alias address on those chains. Celo, Worldchain, and Zora deployments are owned by CrossChainAccount contracts owned by DUNI. Standardizing ownership across chains will be addressed in a future governance proposal.
• On Celo, Uniswap v2 and v3 admin roles are being transferred from Wormhole to a DUNI-owned CrossChainAccount in proposal 94, which will execute prior to this proposal if passed. Because this proposal uses that CrossChainAccount, simulations currently fail.
• Tenderly, a dependency for these simulations, does not support Zora so those calls cannot be simulated.

Relevant Addresses

Soneium

Contract	Address
TokenJar	0x85aeb792b94a9d79741002FC871423Ec5dAD29e9
Releaser (OptimismBridgedResourceFirepit)	0xc9CC50A75cE2a5f88fa77B43e3b050480c731b6e
V3OpenFeeAdapter	0x47Cf920815344Fd684A48BBEFcbfbed9C7AE09CF
UniswapV3Factory	0x42aE7Ec7ff020412639d443E245D936429Fbe717
UniswapV2Factory	0x97FeBbC2AdBD5644ba22736E962564B23F5828CE
Mainnet Bridge	0x88e529A6ccd302c948689Cd5156C83D4614FAE92

XLayer

Contract	Address
TokenJar	0x8Dd8B6D56e4a4A158EDbBfE7f2f703B8FFC1a754
Releaser (OptimismBridgedResourceFirepit)	0xe122E231cb52aea99690963Fd73E91e33E97468f
V3OpenFeeAdapter	0x6A88EF2e6511CAFfE2D006e260e7A5d1E7D4d7D7
UniswapV3Factory	0x4B2ab38DBF28D31D467aA8993f6c2585981D6804
UniswapV2Factory	0xDf38F24fE153761634Be942F9d859f3DBA857E95
Mainnet Bridge	0x64057ad1DdAc804d0D26A7275b193D9DACa19993

Celo

Contract	Address
TokenJar	0x190c22c5085640D1cB60CeC88a4F736Acb59bb6B
Releaser (OptimismBridgedResourceFirepit)	0x2758FbaA228D7d3c41dD139F47dab1a27bF9bc25
V3OpenFeeAdapter	0xB9952C01830306ea2fAAe1505f6539BD260Bfc48
UniswapV3Factory	0xAfE208a311B21f13EF87E33A90049fC17A7acDEc
UniswapV2Factory	0x79a530c8e2fA8748B7B40dd3629C0520c2cCf03f
Mainnet Bridge	0x1AC1181fc4e4F877963680587AEAa2C90D7EbB95
Celo CrossChainAccount	0x044aAF330d7fD6AE683EEc5c1C1d1fFf5196B6b7

Worldchain

Contract	Address
TokenJar	0xbDb82c2dE7D8748A3e499e771604ef8ef8544918
Releaser (OptimismBridgedResourceFirepit)	0xbDb82c2dE7D8748A3e499e771604ef8ef8544918
V3OpenFeeAdapter	0x1CE9d4DfB474Ef9ea7dc0e804a333202e40d6201
UniswapV3Factory	0x7a5028BDa40e7B173C278C5342087826455ea25a
UniswapV2Factory	0x5C69bEe701ef814a2B6a3EDD4B1652CB9cc5aA6f
Mainnet Bridge	0xf931a81D18B1766d15695ffc7c1920a62b7e710a
CrossChainAccount	0xcb2436774C3e191c85056d248EF4260ce5f27A9D

Zora

Contract	Address
TokenJar	0x4753C137002D802f45302b118E265c41140e73C2
Releaser (OptimismBridgedResourceFirepit)	0x2f98eD4D04e633169FbC941BFCc54E785853b143
V3OpenFeeAdapter	0xbfc49b47637a4DC9b7B8dE8E71BF41E519103B95
UniswapV3Factory	0x7145F8aeef1f6510E92164038E1B6F8cB2c42Cbb
UniswapV2Factory	0x0F797dC7efaEA995bB916f268D919d0a1950eE3C
Mainnet Bridge	0xdC40a14d9abd6F410226f1E6de71aE03441ca506
CrossChainAccount	0x36eEC182D0B24Df3DC23115D64DB521A93D5154f

Proposal

This is the first proposal to use the new governance process approved in UNIfication. The new process only applies to fee parameter updates, where proposals can bypass the RFC stage and go directly to a five-day Snapshot followed by an onchain vote. This allows for faster updates to protocol fees, while retaining the security of onchain governance.

Snapshot vote here.

Since UNIfication went live in late December we have been monitoring protocol fees, which were rolled out gradually to ensure protocol health. This started with v2 and select v3 pools on Ethereum mainnet. This rollout has gone well, with market-adjusted TVL up on Ethereum mainnet since December. The burn system is working as expected, permissionlessly converting fees in many different tokens into UNI burns.

Now, we propose to:

• Expand protocol fees on v2 and v3 to Arbitrum, Base, Celo, OP Mainnet, Soneium, X Layer, Worldchain, and Zora
• Enable protocol fees on all v3 pools via a new tier-based v3OpenFeeAdapter on mainnet and the above L2s

Implementation Details

Expand protocol fees to L2s and burn UNI on mainnet

This proposal introduces v2 and v3 protocol fees on eight chains. Fees on each chain will be routed to the TokenJar on that respective chain.

UNI burned on L2s doesn't stay on L2s - it is bridged back to mainnet and sent to 0xdead. This uses the same infrastructure used for burning Unichain sequencer fees (OptimismBridgedResourceFirepit for OP Stack chains, and ArbitrumBridgedResourceFirepit for Arbitrum).

Enable fees on all v3 pools

The current v3FeeAdapter manages protocol fees pool by pool and governance maintains a list of individual pools and their fee levels. Today, those pools account for a significant majority of v3 volume on Ethereum mainnet.

v3OpenFeeAdapter replaces this with a tier-based system. Protocol fees are set uniformly across all pools sharing the same LP fee tier. For example, all 1bps LP fee pools could have protocol fees set to 25%. Any pool automatically gets the default protocol fee for its tier, no governance action is needed. This means if this proposal passes, protocol fees will be active on every v3 pool. Governance retains the ability to override fees on individual pools.

Governance Process

Please note that because of GovernorBravo's limit of 10 actions per proposal, there will be two separate onchain votes posted in parallel. One proposal will include the change to mainnet's fee controller and turn on fees on Base, OP Mainnet, and Arbitrum, the other will turn on fees on Celo, Soneium, Worldchain, X Layer, and Zora.