Which DAO enabled protocol fees?

TLDR

Uniswap maker/">DAO enabled protocol fees.

1. The UNIfication proposal passed and will activate the fee switch after a short timelock, per a governance update. See the UNIfication approval.
2. The change routes a portion of trading fees to an on-chain burn mechanism for UNI, with percentages set by pool tier. Details in the fee switch overview.
3. A one-time burn of 100 million UNI from the treasury is part of the package, as noted in the governance coverage.

Deep Dive

1. What Changed

Uniswap (UNI) governance approved the UNIfication plan, which turns on protocol fees and ties them to an automated UNI burn running on-chain after a two-day timelock. The proposal includes a retroactive burn of 100 million UNI from the treasury, then ongoing burn fed by protocol fees captured from supported pools. See the governance coverage and the fee switch overview.

2. Why It Matters

The fee switch creates a revenue link between Uniswap usage and UNI supply reduction. Uniswap has historically generated substantial fees, with recent reporting citing over $1 billion in annual fees across DEXs where Uniswap leads; channeling a slice into burns formalizes value capture for holders. See the UNIfication approval.

1. A portion of LP fees on v2/v3 pools is redirected to the protocol and burned programmatically, with per-tier percentages configurable by governance. See the fee switch overview.
2. The one-time 100 million UNI burn reduces circulating supply at the outset, with future burns tied to actual fee throughput. See the governance coverage.

3. Trade-Offs And Risks

Redirecting a slice of LP fees to protocol burns slightly lowers LP take-home fees on affected pools, which could influence liquidity decisions if yields tighten. Governance retains the ability to adjust pool-specific fee parameters, making outcomes path-dependent over time. See configuration details in the fee switch overview.

Conclusion

Answer: Uniswap DAO. Enabling protocol fees ties Uniswaps trading activity to UNIs supply via burns, strengthening long-term value capture. The near-term effects hinge on pool-level settings and LP behavior, with the treasury burn establishing an initial supply reduction.