I woke up to find that $UNI had surged 50%! The expectation of the fee switch being turned on has been realized. UNI is no longer a pure governance token, but one backed by revenue. The DeFi revenue sharing narrative has accelerated.
Proposal Highlights: 1/6 of the UNI V2/V3 pool fees will be used for UNI buybacks and burning; all Unichain L2 fees will be burned; 100 million UNI will be retroactively burned.
1. Fee Switch Officially Opened: Activate the protocol fee mechanism, directly using a portion of transaction fees (0.05% for V2 pools, 1/4 or 1/6 of the LP fees for V3 pools) to buy back and burn UNI. Simultaneously, all Unichain L2 sorter fees (after deducting L1 data costs and 15% OP fees) will be used for burning. This ends UNI's five-year history of "no revenue accumulation." In the past 30 days, Uniswap's fee revenue has reached $230 million, an annualized $2.76 billion. Burning one-sixth of this will create approximately $460 million in deflationary pressure annually.
2. Retroactive Burning of 100 Million UNI: The proposal includes immediately burning 100 million UNI from the Treasury (10% of the total supply, worth approximately $950 million) to compensate for "historical omissions" of unactivated fees since the token's launch in 2020.
3. Improved Regulatory Environment: Hayden Adams emphasized in the proposal that for the past five years, due to regulatory pressure from the SEC and other regulators (costing millions of dollars in legal fees), Labs was unable to participate in governance and activate fees. Now, with a more favorable US regulatory environment, coupled with Wyoming's DUNA legal structure, fee switch is provided with compliance protection.
4. Ecosystem Optimization and Labs Restructuring: The proposal introduces Protocol Fee Discount Auction (PFDA, a zero-fee trading period for users/LPs, increasing LP returns and internalizing MEV); V4's "aggregator hooks" will aggregate external liquidity and charge fees; Labs will stop charging interface/wallet/API fees, focusing instead on protocol growth; foundation staff will be merged into Labs, forming a unified growth fund.
UNI has begun the end of the "product-to-token decoupling" phenomenon; UNI is no longer an "air coin," and the spring of DeFi has returned.
UNI is currently around 10u, and is estimated to reach 15-20.
$sushi, $crv, etc., have also risen by 10%+.
https://x.com/jingouwang888/status/1988041079019761831?s=46&t=0Kkz8Ugz_9MxRMabXLSC-Q
