Uniswap Triggers Deflationary Loop with $600 Million Treasury Contraction
BeInCrypto
Uniswap Labs executed a deflationary pivot by permanently burning 100 million UNI tokens valued at $600 million.Summary
Uniswap Labs permanently burned 100 million UNI tokens, valued at $600 million, as part of the on-chain execution of the 'UNIfication' governance proposal. This move shifts the protocol's model from prior fee retention to a framework centered on sustained token burns, aiming to make UNI deflationary by using protocol fees to buy and burn the token. The changes affect fee allocations in Uniswap v2 and v3, with supporters expecting reduced circulating supply and increased scarcity. Furthermore, the organizational structure is being consolidated, with Uniswap Foundation employees transitioning to Uniswap Labs. The market reacted positively, with UNI rising over 6% following the confirmation of this deflationary pivot.
(Source：BeInCrypto)