My predictions for the UNIfication proposal, once activated: - Uni v3 pools become unprofitable despite the FPDA, LPs migrate to Uni v4 - some LPs leave the Uniswap ecosystem entirely, net TVL goes down - fees collected on v3 compress to zero, with some coming from v2 Scenario A: Uniswap does nothing, the fee switch returns are abysmal, LP are more unprofitable than before, tvl and activity decrease, Uniswap/UniswapX becomes a routing layer with no native LP liquidity. Scenario B: - Feeling the pressure, the fee switch is turned on for v4 pools and $UNI tokens are aggressively distributed as incentives - LPs auto sell $UNI or become the only actor that can profitably call release() in the FirePit bc their $UNI cost basis is zero - value generated by the fee switch ≈ value of $UNI incentives distributed (unless a non-circular mechanism is introduced) - $UNI becomes a governance-directed rebate token for LPs, with unclear benefit to passive token holders LP profitability (or lack thereof) is more than a meme. I have been an LP for years and I’m building a protocol focused entirely on LP tooling to increase profitability. I am not entirely sure either outcome is what’s best for LPs.