Uniswap Approves UNIfication Proposal, Burns 100 Million UNI

The Uniswap community has overwhelmingly approved a landmark governance proposal known as UNIfication, activating protocol fees and initiating a one-time burn of 100 million UNI tokens, in a move set to reshape the decentralized exchange's economic model. The vote concluded on December 25, 2025, with more than 125 million UNI tokens cast in favor and only 742 against, easily surpassing the required 40 million quorum threshold.

Following a standard two-day timelock, the changes will execute on-chain, marking a significant evolution for Uniswap, the leading decentralized exchange on Ethereum. The proposal, introduced by Uniswap Labs and the Uniswap Foundation in November, redirects a portion of trading fees from liquidity providers to the protocol itself. Previously, all swap fees went directly to liquidity providers, leaving UNI holders with governance rights but no direct economic tie to the platform's activity. Now, these protocol fees, along with net sequencer fees from the Unichain layer-2 network, will fund ongoing burns of UNI tokens, creating a deflationary mechanism linked to trading volume.

In addition to the continuous burns, the one-time treasury burn of 100 million...