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Uniswap’s UNIfication Plan Targets 100 Million UNI Burn to Boost Value

Key Takeaways

  • ​Uniswap’s UNIfication plan aims to make UNI more rewarding by adding fee-based token burns and new liquidity provider incentives;
  • The proposal includes burning 100 million UNI, around 16% of supply, and channeling Unichain’s $7.5 million annualized fees to the same system;
  • A 20 million UNI Growth Budget will fund developers and projects to expand the Uniswap ecosystem and support future protocol upgrades.

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Uniswap’s UNIfication Plan Targets 100 Million UNI Burn to Boost Value

The Uniswap Foundation and Uniswap Labs have introduced a proposal to make the UNI UNI $8.70 token more rewarding for holders.

The plan, called UNIfication, includes several updates to how the protocol handles fees and rewards.

One key change would introduce a system that uses a portion of protocol fees to burn UNI tokens. This would reduce the overall supply and could increase the token’s value over time.

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Another part of the plan proposes a new auction system designed to improve earnings for liquidity providers.

As part of this proposal, the Foundation also aims to remove 100 million UNI from its treasury, about 16% of the circulating supply.

Revenue from Unichain, Uniswap’s Ethereum ETH $3,572.10 Layer-2 network, would also contribute to the burn system. Unichain has generated roughly $7.5 million in annualized fees, which would be directed toward token burns.

In a joint statement, the Uniswap Foundation said:

We believe this proposal positions the Uniswap Protocol to win as the default decentralized exchange for tokenized value.

Alongside these token changes, the Foundation emphasized that supporting developers and growing the ecosystem remain a main goal.

To do this, it plans to create a Growth Budget of 20 million UNI. The funds would go toward grants and projects that help improve the protocol and expand decentralized finance tools.

On October 16, Uniswap updated its web platform to include support for the Solana SOL $163.88 blockchain. What led to the decision? 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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