The purpose of this post is make clear UNI governance has two very different decisions to make 1). should a fee switch be turned on? and 2) how should fees be utilized?
I agree these are separate decisions. I think they are being asked in the wrong order.
The first decision should be the business decision: What is Uniswap looking to fund, and to who’s benefit?
Only then should we think about the financing decision: How are we going to fund what we want to fund?
Said another way:
By taxing LP’s fees by 10%, you’re implicitly saying “Uniswap governance knows what to do with this 10% of these fees better than you do”.
I agree with @Buckerino’s point that it’s not the most important question. I think the most important question is “What is goal/mission of Uniswap and its treasury?” Until that question is answered, along with how funds would be allocated to further that goal, it doesn’t make sense to divert fees from LPs to the treasury.