The “UNIfication” proposal from Uniswap Labs and the Uniswap Foundation to activate protocol fees for the leading decentralized exchange in crypto and burn millions of UNI has garnered significant backing from voters, evolving the token from a solely governance tool to a value-adding asset.
During the five-day voting period, the proposal amassed over 125 million votes in favor, with only 742 votes against.
Uniswap processes an average of around $2 billion daily in trading volume and generates about $600 million annually in fees, according to DeFillama. Previously, it redirected all fees to liquidity providers, meaning UNI functioned solely as a governance token with no direct economic relationship to the platform’s activities.
Now, a portion of those fees will be allocated to an on-chain mechanism intended to burn the tokens, thereby linking protocol usage directly to a reduction in token supply, which may enhance the market price. In a retroactive move, a total of 100 million UNI from the treasury—valued at over $590 million based on current rates—will also be burned, reflecting fees that could have accrued since the establishment of Uniswap in 2018.
The UNI token has increased by 2.5% over the past 24 hours, reaching $5.92.
Read more: Uniswap Proposes Sweeping ‘UNIfication’ With UNI Burn and Protocol Fee Overhaul
