Governance Approval
The Uniswap community overwhelmingly approved the UNIfication proposal, marking a shift toward more direct alignment of protocol usage with token economics. The vote passed with near-unanimous support, reflecting strong community conviction in this upgrade.
Fee Switch Activation
Under the new framework, a portion of trading fees will be routed to the protocol treasury rather than exclusively to liquidity providers. These fees will be used to burn UNI tokens, reducing circulating supply and introducing scarcity dynamics tied to on-chain activity.
One-Time Token Burn
Following a mandatory two-day timelock, Uniswap will execute a one-time burn of 100 million UNI. This burn approximates the amount that would have been removed from circulation had the fee switch been active since protocol inception.
Operational Restructuring
Responsibilities previously split between Uniswap Labs and the Uniswap Foundation will now be unified. Interface, wallet, and API fees will be removed, and a recurring UNI-funded growth budget will support long-term development and maintenance of the protocol.
Community Reactions
Reactions varied across the ecosystem: some praised the upgrade as a defining moment for DeFi tokenomics, while skeptics questioned the real market impact of token burns. Overall, the upgrade serves as a critical test of whether major DeFi protocols can convert usage into sustainable value.
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