According to Total Value Locked (TVL), the largest decentralized exchange (DEX) platform on Ethereum, Uniswap [UNI] has seen a sharp decline in its “fees per developer” indication recently.
According to information released by Token Terminal on December 11th, Uniswap made almost $150 million in “fees per core developer” at the height of the bull market in 2021.
However, the figure fell to about $10 million in the current market. This implied that the base developer cost was cut in half within a relatively short period of time.
The declining developer’s fee for Uniswap was significantly impacted by the devaluation of UNI. In the current market, the price of every cryptocurrency has fallen, and UNI was no exception. Developer fees were originally calculated in UNI, so a fall in value would result in lower amounts in USD.
The Uniswap development activity statistic shows a huge decline in project activity around May, from over 500 to around three. The development activity had risen to 78.05 at the time of writing and appeared to be continuing to increase.
In the near future, the Uniswap regulatory council will decide whether to test a “fee switch” on a selection of pools. A proposal was submitted in July 2022 with the aim of levying fees on a certain number of Uniswap liquidity pools.
The code allows for a minimum fee of 10% to be imposed on the selected pools. The cost change will not affect users who are directly using the protocol to switch. An insignificant percentage of the current payments made to liquidity providers will be maintained instead.
The existing fee for core developers may drop to between 10% and 15% of its current level if the fee swap proposal is accepted and implemented.
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