Uniswap's Token Burn and Protocol Fee Proposal Receives Overwhelming Voter Support
Uniswap Labs and Uniswap Foundation's UNIfication proposal to activate protocol fees and initiate a token burn of UNI has received overwhelming support from voters. Over the course of five days, more than 125 million votes were cast in favor, with only 742 dissenting.
The on-chain mechanism will burn a portion of UNI tokens, thereby linking protocol usage directly to a reduction in supply. Additionally, there will be a retroactive burn of 100 million UNI tokens from the treasury—approximately $590 million worth—to reflect potential past fees since the protocol's inception in 2018.
Previously, fees were routed to liquidity providers, but the new design connects fees more closely to UNI's value and its potential price impact. According to DeFiLlama, Uniswap handles about $2 billion in daily trading volume and approximately $600 million in annualized fees. The current UNI price stands around $5.92, marking an increase of about 2.5% in the last 24 hours.
