Glad to see great discussions that have been taking place related to the fee switch! We’d love to get more insight from the community related to the following questions:
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Which liquidity pools in v2 should be turned on? The idea of turning on the switch for three different pools that reflect the three fee tiers that exist in v3 seems like it might provide valuable data points in the event we decide to turn on the fee switch in v3.
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In the event we do turn it on, should we turn it on completely (.05%, which is a 16% decrease in LP’s income) or should we do something smaller to hypotest the sensitivity LP’s have to a fee switch? For example, V3 allows the fee switch to be as small as .03% (a 10% decrease in income), and starting at 10% for v2 might provide insightful data for us to refer to later.
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What is the best mechanism to reward UNI holders after turning the switch on? Burning tokens, buybacks, or consolidating all switch fees and converting to ETH/DAI/etc? There may be different tax consequences to each approach, so that is very important to consider here.
Additionally, it’d be incredibly useful to hear from anyone who strongly believes we shouldn’t turn on the fee switch in V2.