Uniswap's Protocol Fee Proposal to Burn UNI Receives Overwhelming Voter Support
Uniswap's proposal to activate protocol fees and burn UNI tokens received overwhelming support from voters. The UNIfication proposal, put forward by Uniswap Labs and the Uniswap Foundation, aims to transform UNI from a governance-only token to a value-accruing asset, involving the burning of millions of UNI tokens.
Over a five-day voting period, the proposal garnered more than 125 million votes in favor and just 742 opposed. Under the plan, some protocol fees will be directed to an on-chain burn mechanism, creating a direct link between platform usage, token supply reduction, and a potential boost in the UNI price.
The proposal includes a retroactive burn of 100 million UNI tokens from the treasury, valued at over $590 million, representing fees that could have been accrued since Uniswap's launch in 2018. Previously, protocol fees were exclusively distributed to liquidity providers, with no direct economic connection to the UNI token itself.
Uniswap currently processes approximately $2 billion in daily trading volume and generates about $600 million in annualized fees, according to DeFillama data. The UNI token price stands around $5.92, reflecting a 2.5% increase in the past 24 hours.
