Following the Uniswap Fee Switch, Can Wash Trading and Fraudulent Pools Vanish Instantly?
There’s no doubt that Uniswap is the pioneer of DeFi. Had it not been for their AMM breakthrough in late 2018, the Decentralized finance space might have taken significantly longer to uncover a cost-effective, straightforward method for the decentralized exchange of the countless tokens that now exist.
Following their AMM success in Q4 2028, Uniswap has solidified its position as one of the leading Decentralized finance protocols. As of November 12, it stands as the premier DEX with respect to total value locked (TVL). A substantial portion of the $4.9 billion in assets under management is tied up in ETH and its layer-2 solutions.
(Source: DefiLlama)
The $4.9 billion is held by a variety of users, including both projects and retail investors, who provide available volume for a share of the +0.30% transaction fee. Nonetheless, there’s a proposal on the table to modify the fee distribution, directing a small fraction towards purchasing and burning UNI tokens.
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Uniswap Fee-Switch: Key Information You Should Know
On November 10, Hayden Adams, Uniswap’s founder, shared a proposal on X for a Uniswap fee switch aiming to reallocate part of the pool’s trading fee to Uniswap for the advantage of UNI coin holders.
Currently, all transaction fees, whether the +0.3% from v2 pools or tiered rates from v3 pools that offer concentrated available volume, are fully assigned to available volume providers.
Today, I’m incredibly excited to make my first proposal to Uniswap governance on behalf of @Uniswap alongside @devinawalsh and @nkennethk
This proposal turns on platform fees and aligns incentives across the Uniswap ecosystem
Uniswap has been my passion and singular focus for… pic.twitter.com/Ee9bKDric5
— Hayden Adams
(@haydenzadams) November 10, 2025
Should the proposal garner approval, the fee allocation would be structured as follows:
0.25% to market fluidity providers and 0.05% to the platform on Uniswap v2 pools. For Uniswap v3, platform fees will amount to a quarter or a sixth of the available volume provider fee, based on the tier.
This alteration effectively establishes a UNIification. The network plans to utilize the funds collected to buy UNI from the market and subsequently destroy them.
In addition, the proposal aims to abolish Uniswap Lab’s front-end fees and eliminate about 100 million UNI from the treasury while also redirecting Unichain’s sequencer fees toward the burning mechanism.
Through buybacks and coin burns, UNI holders will experience direct value accretion, in contrast to the existing system.
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Will the Fee Switch Eradicate Wash Trading and Scam Pools on Uniswap?
In light of this proposal, the UNI USD value has jumped. It remains a gaining momentum topic across several crypto tracking platforms, including Coingecko.
The UNI digital currency has experienced a +65% increase within the last week alone. If investors keep this momentum, the Decentralized finance crypto token may potentially surpass the $10 mark.
In addition to the notable bull run, analysts on X predict that with part of the fees from market fluidity providers rerouted towards UNI token burning, wash trading will “disappear” instantly.
(Source: OXSharples, X)
In a post on X, one observer commented that fraudulent liquidity pools, some orchestrating automated rug pulls, thrive on having zero platform fees.
So, one thing a fee switch will do is make scammy pools (honeypots, automated rugs, etc.) vanish overnight. These rely on the network take rate being exactly 0.
By my rough estimation, half of recent Uniswap volume on Base falls into this camp.
Uniswap’s official Dune tracker… https://t.co/M0Wg4eVJEX pic.twitter.com/Jmh2A9Z3h5
— jpn memelord
On Base, he estimated that upwards of $130 billion in volume generated on Uniswap thus far in 2025 is associated with scam pools and wash trading.
Once the fee switch is in place, likely in December pending community endorsement, most of these operations won’t have an incentive to persist as they’ll have nothing to gain.
Additionally, wash trading will incur a cost because the +0.05% platform fee will directly cut into earnings from fraudulent trades, reducing profit margins for those manipulating the markets.
By eliminating scam pools and wash trading, Uniswap’s metrics will more accurately reflect its ecosystem’s true condition while significantly enhancing the quality of trading volume.
On the downside, trading volumes on Uniswap may dip, leading to fewer UNI being bought and destroyed than previously estimated based on current activity.
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After Uniswap Fee Switch, Will Wash Trading And Scam Pools Disappear Overnight?
- Uniswap is the leading DEX in crypto.
- More than $4.9 billion locked into Uniswap.
- Founder proposes a fee-switch.
- Could this put an end to scam pools and wash trading on Uniswap?
The post After Uniswap Fee Switch, Will Wash Trading And Scam Pools Disappear Overnight? appeared first on 99Bitcoins.
