Uniswap governance approves a historic burn of 100M UNI tokens

2025-12-27 01:21:25

Source: Yellow Original Title: Uniswap Governance Approves Historic Burn of 100M UNI Tokens

Original Link: https://yellow.com/es/news/la-gobernanza-de-uniswap-aprueba-quema-historic-de-100-millones-de-tokens-uni The Uniswap governance community (UNI) has approved a transformative economic reform that will permanently remove 100 million UNI tokens from circulation.

The UNIfication proposal passed on December 25 with nearly unanimous support.

Over 125.3 million votes supported the measure, while only 742 opposed, representing a 99.9% approval.

On December 26, UNI was trading around $5.90 as the market absorbed the implications.

What happened

The proposal activated for the first time on the Ethereum mainnet the protocol’s fee switch, which had been inactive on Uniswap for a long time.

Previously, all trading fees were exclusively allocated to liquidity providers.

Now, a portion will flow into the protocol and be used to burn UNI tokens.

The changes take effect after a mandatory two-day governance lock period.

The one-time treasury burn removes approximately 16% of the circulating supply.

At current prices, the 100 million tokens are worth approximately $590 million.

The burn compensates for fees that could have accumulated since Uniswap’s launch in 2018 if the switch had been active earlier.

Founder Hayden Adams announced the results on social media, calling it a milestone for the protocol’s next decade of growth.

Why it matters

The move fundamentally transforms UNI from just a governance token into an asset that captures economic value from platform activity.

Since its launch, Uniswap has processed over $4 trillion in total trading volume, making it the leading decentralized exchange.

Increased platform usage will now directly reduce the token supply through continuous burns.

This creates a deflationary pressure that could support price appreciation over time.

The proposal also consolidates operations by merging the teams of the Uniswap Foundation and Uniswap Labs, while removing frontend fees.

Critics warn that aggressive fee implementation could drive liquidity providers to competing platforms.

Success will test whether major DeFi protocols can turn network usage into sustainable value for the token.

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