UNIfication Proposed: Uniswap Seeks to Burn 100M UNI and Activate Fee Switch for Deflationary Value
Uniswap Labs and the Uniswap Foundation have launched the groundbreaking "UNIfication" proposal, which includes activating the long-awaited protocol fee switch and implementing a major token burn. The proposal aims to transform the UNI token from a pure governance asset into a deflationary asset with clear economic value.
Key economic mechanisms include:
Retroactive Burn: Directly burning 100 million UNI held in the treasury, equivalent to approximately 16% of the circulating supply.
Fee Activation: Diverting a portion of exchange fees (estimated at 16.7% to 25% of pool revenue) to the protocol, with a portion used to buy back and burn UNI.
Analysts project that if a 0.05% fee is directed to UNI, the protocol could buy back or burn over $38 million worth of UNI monthly, positioning it among the strongest buyback models in DeFi. This move, long delayed by regulatory uncertainty, is a significant step toward embedding real cash flow into the UNI token.
