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Uniswap Set to Burn 100 Million UNI After Landmark Vote Win

Key Takeaways

  • Uniswap’s UNIfication proposal passed, which activates protocol fee switches for v2 and v3 on Unichain after a two-day lock period;
  • The plan includes burning 100 million UNI tokens and introducing fee discount auctions to boost liquidity provider returns;
  • With $4 trillion traded since 2018, Uniswap will also allocate 20 million UNI for growth to fund developers and future innovations.

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Uniswap Set to Burn 100 Million UNI After Landmark Vote Win

A recent vote on the UNIfication proposal, which began on December 20 and ends on December 25, has cleared the required threshold to take effect this week.

The decision will activate the protocol fee switch for Uniswap UNI $6.19 versions 2 and 3 on the Unichain mainnet, according to a post on X from CEO Hyaden Adams. A two-day time lock will follow before the change goes live.

Once activated, the plan calls for the burning of 100 million UNI tokens from the Uniswap Foundation's treasury. Additionally, a Protocol Fee Discount Auctions feature will be added to raise liquidity provider returns.

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Uniswap's platform has facilitated over $4 trillion in trading volume since launching in November 2018. As of now, UNI ranks 39th by market capitalization at roughly $3.8 billion.

The proposal has notable supporters, including Jesse Waldren of Variant, Kain Warwick of Infinex and Synthetix, and former Uniswap Labs engineer Ian Lapham. Opposition remains minimal, with only 741 votes against and around 1.5 million abstentions.

The Uniswap Foundation reassured that supporting builders remains a priority. A Growth Budget of 20 million UNI tokens will be set aside to fund future development.

World Liberty Financial proposed allocating 5% of its WLFI treasury, about $120 million, to support the growth of its USD1 stablecoin. What did the company say? Read the full story.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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