Forbes: Uniswap's exit could result in Ethereum network validators losing approximately $400-500 million in annual revenue.

PANews December 5th News, according to Forbes, Uniswap Labs recently announced the launch of its new blockchain Unichain, while Uniswap has long been a key driver of activity on the Ethereum Mainnet. As Uniswap transitions to its own on-chain, validators on the Ethereum network may lose an annual income of about 400 to 500 million US dollars. But more importantly than this economic loss, it threatens the basic narrative of Ethereum as a deflationary currency. Uniswap’s general router is the largest account that consumes gas fees, accounting for 14.5% of Ethereum’s gas fees, equivalent to the destruction of $1.6 billion worth of Ether. This means that the effectiveness of the burn mechanism will be weakened, further weakening Ethereum’s economic position. In addition, Justin Bons, the founder and chief investment officer of Cyber Capital, warned that Ethereum is at a critical moment where its reliance on Layer2 solutions may weaken the vitality of the Mainnet. As more activities are being transferred from the main level of Ethereum, the security provided by the income stream will be weakened, forming a negative feedback loop. Although Ethereum’s scaling solutions aim to accommodate more transactions, the migration of key protocols like Uniswap suggests that these benefits may come at a high cost. The resulting decline in fee revenue may undermine Ethereum’s ability to maintain a robust security infrastructure that supports decentralization.