UNISWAP BURNS 100M TOKENS! 🔥 SO WHY IS THE PRICE DUMPING? 📉
Uniswap has finally activated its long-awaited fee switch, initiating a massive burn of 100 million
$UNI tokens. While this transitions
$UNI from a governance token to a yield-generating asset, the price surprisingly dropped 6% on the news.
The burn makes
$UNI deflationary, but the market is reacting to the immediate revenue share, which is currently limited to approximately $30k/day. This is a classic "sell the news" event where traders realized the short-term yield doesn't justify a massive pump yet. The mechanism acts more like a stock buyback than a direct dividend, frustrating some investors.
Uniswap’s move sets a precedent for other DeFi protocols like AAVE and LDO. If Uniswap avoids SEC "security" classification while running a profitable business model, others will follow. This marks the start of "DeFi 2.0," where protocols must prove profitability.
Investors are monitoring weekly burn rate data and the upcoming V4 launch. A key concern remains whether the SEC will ultimately attack this new deflationary model.
It is a battle between long-term supply squeezing and short-term greed.
Uniswap is burning 100M tokens, but price is down. Is the market underestimating the supply squeeze?
#Uniswap #UNI #DeFi #TokenBurn