# Making Protocol Fees Operational **URL:** \ **Category:** Requests for Comment\ **Created:** [May 10, 2023, 5:00pm UTC](https://gov.uniswap.org/t/making-protocol-fees-operational/21198 "2023-05-10T17:00:49Z")\ **Posts on this page:** 1\ **Showing post:** 17
**Author:** ![BlockworksResearch](https://sea2.discourse-cdn.com/flex016/user_avatar/gov.uniswap.org/blockworksresearch/32/7292_2.png) [@BlockworksResearch](https://gov.uniswap.org/u/BlockworksResearch)\ **Post date:** [May 16, 2023, 5:28pm UTC](https://gov.uniswap.org/t/making-protocol-fees-operational/21198/17 "2023-05-16T17:28:20Z")
Blockworks Research is currently participating in the Uniswap Foundation’s delegate race. While we await delegation, we will continue to be active participants in governance discussions. We are in favor of GFX Lab’s proposal to move forward with testing the fee switch on Polygon, but require clarity on a few points before voting yes to the proposal. 1. It should be more clearly stated that this proposal is solely to turn the fee switch on for all Polygon V3 pools, to the tune of 20% of swaps fees, and only applicable to pools with \>$10,000 in expected fee revenue. Additionally, we’d like all pools that currently meet this criteria officially listed. 2. Who will be building the contract that sits between the timelock and the factory? This is a non-trivial task that will require audits as transferring ownership of the factory contract poses extreme risks to the DAO and protocol. We’d like to see a clear and technically specified plan as to this transition. 3. What token(s) will the proceeds be sold for? “collect the fees, sell the fee tokens automatically via the Uniswap auto-router, and then send the proceeds to the protocol treasury” is not sufficient without a goal of what tokens we’d like the treasury to end up with (EG a mix of 33% USDT, USDC, and ETH). Additionally, we highly recommend the use of an application like Milkman in place of selling via the Uniswap router in order to mitigate MEV and frontrunning. This has been a huge problem for Curve and Sushi who employ similar models. We agree with Leighton’s sentiment that a discussion around the use of the funds should begin prior to the implementation of this proposal, but disagree that it should pose a roadblock to its passing. We view this fee switch proposal as an experiment that tests the protocol’s ability to turn on the fee switch without disrupting the DEX. A use for the revenue is far more vital prior to the implementation on mainnet. This should be a barrier to mainnet deployment rather than testing. After all, Polygon V3 pools only make up ~5% of the total V3 volume and ~2.5% of the total V3 TVL. We have many ideas for using protocol revenue, which we will include in a separate discussion surrounding this topic. Having a diverse and powerful treasury is a huge benefit to the protocol in itself and dependent on total revenue received, the optimal use cases may vary. --- _[View the full topic](https://gov.uniswap.org/t/making-protocol-fees-operational/21198)._