Uniswap Labs and Uniswap Foundation jointly proposed a governance overhaul dubbed “UNIfication,” aiming to align incentives across the ecosystem and position the protocol as the default exchange for tokenized assets. The plan would activate protocol fees and redirect a portion of revenue toward token burns.
The proposal calls for a retroactive burn of 100 million UNI tokens and the activation of protocol fee mechanisms on both Uniswap v4 and the Unichain layer-2 network. Protocol Fee Discount Auctions would internalize maximal extractable value to further fuel the burn process.
Governance restructuring under UNIfication would consolidate key ecosystem teams from the Foundation into Uniswap Labs, overseen by a five-member board including protocol co-founders. Core product monetization would pivot to zero fees in favor of UNI holder interests.
Under the plan, a 20 million-UNI annual growth budget would be established beginning in 2026, distributed quarterly for ecosystem expansion. Voting by DAO members will determine final approval and timing.
Advocates assert that a unified governance structure and fee alignment will drive higher quality volume, encourage partnerships and solidify Uniswap’s market position. Critics caution over centralization risks and potential community dissent.
Execution of UNIfication would mark the most significant economic and governance evolution since UNI token launch in 2020, with broad implications for decentralized exchange models. Voting begins after submission of a formal proposal following community review.
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