Uniswap token burn moves closer to reality as 99% of voters in favor of ‘fee switch’ proposal

The Uniswap protocol's 'UNIfication' proposal, which aims to activate the long-awaited 'fee switch,' is nearing reality after receiving overwhelming support, with over 99% of voters favoring the change. This proposal will redirect approximately one-sixth of trading fees into a protocol-controlled pool, which will then be used to burn UNI tokens, thereby reducing supply and linking the token's value to the exchange's trading volume. Currently, all fees go to liquidity providers, leaving UNI as a governance-only token. Based on current volumes, this mechanism could channel about $130 million annually into the burn. The proposal also includes a one-time burn of 100 million UNI from the treasury. Furthermore, the initiative restructures Uniswap by consolidating Uniswap Labs and the Uniswap Foundation into a unified operational model focused more on execution and growth rather than grants.

(Source：CoinDesk)