Uniswap governance passes major ‘UNIfication’ proposal; 100 million token burn imminent

Uniswap governance overwhelmingly passed the major 'UNIfication' proposal with 99.9% support, fundamentally shifting the protocol's economics toward a deflationary model. This activates the long-awaited protocol "fee switch," which redirects a portion of trading fees—previously only for liquidity providers—to the protocol to continuously burn UNI tokens. Net sequencer fees from Unichain will also contribute to this burn, creating a deflationary loop tied to protocol usage. Furthermore, the proposal consolidates operations by moving Uniswap Foundation responsibilities to Uniswap Labs and establishing an annual growth budget funded by UNI. Following a two-day timelock, the protocol is set to burn 100 million UNI tokens, an estimate of what would have been burned since launch if the fee switch were active. Uniswap Founder Hayden Adams stated this sets the stage for the next decade of growth, noting the shift occurs as DeFi reaches an inflection point amid regulatory scrutiny.

(Source：The Block)