Uniswap weighs protocol burns as its 2025 fee haul approaches $1 billion

Uniswap Labs and the Uniswap Foundation introduced a joint "UNIfication" proposal that focuses on activating protocol fees and implementing a UNI token burn component, including a retroactive burn, while streamlining governance. This shifts from an earlier concept where fees would accrue to staked-and-delegated UNI. Uniswap has generated over $985 million in fees year-to-date in 2025, averaging nearly $93 million monthly, showing a strong recovery after a weak first quarter. If governance activates the v3 fee switch, the protocol could capture 10-25% of LP fees, translating to eight- to low-nine-figure annualized economics at the current run-rate. Under the UNIfication plan, these captured fees would be routed to a burn system, benefiting UNI token holders through supply reduction. The proposal caused the UNI token price to surge over 35% shortly after its announcement.

(Source：The Block)