Uniswap founder responds to v4 fee switch controversy: protocol fees are additive, LP earnings have not decreased

Uniswap founder Hayden Adams responded on X to the controversy triggered by the v4 fee switch, clarifying that the notion of “LP fees being reduced” is a misunderstanding. The protocol fee is additive rather than deductive, and LPs still earn 30 basis points on each transaction, just as before.

Regarding the claim that “the protocol takes away 25% of LP profits,” he stated that in the 30 basis point pool, the protocol fee is 5 basis points, which accounts for about 14% of the total transaction fee, and the money LPs originally earned is not reduced at all. Hayden Adams also pointed out that some exchanges charge 100 to 200 basis points per transaction, while Uniswap’s 5 basis point fee at the 30 basis point tier is 20 to 40 times cheaper. He also criticized certain forked projects that take 100% of transaction fees yet use uneven inflation—set through token voting—to “compensate” LPs.