Decentralized exchange (DEX) Uniswap has announced it will begin charging a 0.15% fee on certain token swaps made through its web and mobile apps. The change, revealed by Uniswap founder Hayden Adams on October 17th, makes Uniswap one of the first major DEXs to introduce swap fees.
According to Adams, the 11 assets that will be subject to fees include stablecoins and wrapped versions of coins like ETH, BTC, and EUR. Fees will only apply when both the input and output assets of a swap are fee-eligible.
Uniswap claims the new revenue stream will support continued research, development, and expansion of its products and services. However, the move quickly drew criticism from parts of the crypto community.
Twitter account “Autism Capital” accused Uniswap of neglecting its UNI governance token holders, who receive no part of the new fee revenue. Crypto YouTuber “yourfriendSOMMI” agreed the fees bypass UNI holders while introducing unwanted KYC requirements.
Scott Melker noted how Uniswap’s potential KYC integration sparks debates about the future decentralization of DeFi. Meanwhile, UNI prices barely reacted to the announcement, falling just 1% on the day. The token has dramatically underperformed in 2022, dropping 91% from it’s all-time high of $44 reached in May 2021.
While the 0.15% fee is lower than rates charged by centralized exchanges, it represents a shift for Uniswap away from its founding zero-fee model. With UNI holders excluded from the proceeds, some have accused Uniswap of centralizing control and profiting at the expense of its community.
