Uniswap UNIfication Proposal: Token Burn Voting Has Started

Uniswap has reached a long-awaited milestone by presenting a comprehensive governance proposal called UNIfication for voting. Founder Hayden Adams announced that a critical voting process for UNI token holders will take place from December 19 to December 25. This process aims to provide a concrete solution to the long-discussed issue of protocol fees within the Uniswap ecosystem.

The proposal comes after a consultation process carried out by Uniswap Labs and the Uniswap Foundation. If the proposal is accepted, it will mark the first time in Uniswap's history that a portion of transaction fees will be directed to the protocol instead of liquidity providers. This represents the structural transformation that UNI holders have long demanded.

As part of the UNIfication proposal, an initial retroactive 100 million UNI token burn from the treasury is planned. This amount represents the estimated supply that could have been burned if the protocol fees had been active since the token launch. Following the voting process, protocol fees will be activated on the Ethereum mainnet for Uniswap V2 and V3. In Uniswap V2, the liquidity provider fee will be reduced from 0.3% to 0.25%, with the remaining 0.05% being allocated to the protocol. In Uniswap V3, fees will be divided on a pool basis and can be updated by governance over time.

It is important to emphasize that the UNIfication proposal is not limited to fees. The relationship between Uniswap Labs and governance is also being redefined. Accordingly, Uniswap Labs will enter into a binding service agreement under the DUNA legal framework in Wyoming. Additionally, certain operational tasks of the Uniswap Foundation will be delegated to Uniswap Labs, and interface and API fees will be eliminated. From 2026 onwards, an annual 20 million UNI growth budget will be established.

Uniswap aims to generate an average monthly revenue of 100 million dollars throughout 2025 and continues to be one of the strongest protocols in the DeFi ecosystem. After the UNIfication proposal was put to a vote, the price of UNI increased by approximately 7.5%. Investors should closely monitor the outcomes of this process and continue to keep track of developments within the Uniswap ecosystem.