Uniswap Token Burn Proposal Nears Approval with Over 99% Voter Support
Uniswap's UNIfication proposal to activate the protocol fee switch has reached quorum as of December 22, 2025, with more than 69 million UNI votes in favor and virtually no opposition. Voting will remain open until December 25. The fee switch aims to redirect approximately one-sixth of trading fees into a protocol-controlled burn pool to burn UNI tokens, with the annual UNI burn estimated to be about $130 million based on current trading volumes.
The proposal also includes a one-time burn of 100 million UNI tokens from the treasury, valued at roughly $940 million at current prices. This initiative is designed to transform UNI from a governance-only token into a value-accruing asset linked to Uniswap's daily trading volume.
Additionally, the proposal consolidates Uniswap Labs and the Uniswap Foundation under a single operational and economic model, marking a shift toward an execution-focused growth approach. Uniswap currently processes around $150 billion in monthly trading volume across more than 30 blockchains, according to DefiLlama data.
The broader aim of the proposal is to realign Uniswap's token economics with its scale, making UNI more closely tied to cash flow and less speculative in nature.
