Coinspeaker
Nov 11, 2025
7 0

Uniswap’s UNIfication Proposal Fuels 30% UNI Surge and Trading Spike

Uniswap Token Surge

  • UNI token increased by nearly 30% in 24 hours. It now holds the 24th spot on CoinMarketCap, valued at $5.44 billion.
  • Trading volumes soared over 500%, exceeding $3 billion due to investor interest.

Anticipated Governance Proposal

  • The surge is linked to anticipation around a governance proposal that may alter Uniswap's token economy and fee model.

Potential Supply Shock

  • CryptoQuant CEO Ki Young Ju suggests a "parabolic" phase could occur if the fee switch is activated.
  • Uniswap v2 and v3 have generated $1 trillion in trading volume this year, potentially translating to $500 million in annual UNI burns with the new fee model.
  • With $830 million in UNI on exchanges, potential supply shock could drive prices higher.

Governance Overhaul: UNIfication Proposal

  • Uniswap Labs and the Uniswap Foundation propose "UNIfication," aiming for structural realignment by activating protocol fees and implementing programmatic UNI burns.
  • Plans to merge Foundation's core functions with Uniswap Labs to consolidate leadership and focus on expanding protocol adoption.

Key Features of the Proposal

  • Protocol Fee Discount Auctions (PFDA) to enhance liquidity provider returns and manage MEV.
  • Aggregator hooks in Uniswap v4 to collect fees from external liquidity sources.
  • A retroactive burn of 100 million UNI from the treasury as compensation for inactive protocol fees since 2020.
  • A 20 million UNI annual growth budget for development, builder programs, and partnerships to attract institutional participants.