Dec 26, 2025
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Uniswap Governance Approves 100M UNI Burn and Activates Fee Switch
Uniswap governance has approved the UNIfication overhaul, which includes a 100-million-UNI treasury burn and activation of protocol fees to fund ongoing UNI destruction. The vote concluded with overwhelming support: 125,342,017 UNI in favor and only 742 against.
Key Changes
- 100 million UNI will be burned, removing approximately 16% of the total supply.
- Protocol fees activated on Uniswap v2 and selected high-volume v3 pools on Ethereum mainnet.
- Fees for v2 adjusted from 0.30% to 0.25%, with 0.05% accruing to the protocol.
- v3 protocol fees set at 25% of LP fees on lower-tier pools and 16.7% on higher tiers.
- Fees and net sequencer revenue will be routed into a programmatic burn mechanism.
- Uniswap Labs will disable frontend, wallet, and API fees, focusing on protocol development.
- 40 million UNI allocated for growth and development over two years.
Impact and Projections
- The burn mechanism could annually destroy $280 million to $700 million worth of UNI if 2025 fee levels remain consistent.
- UNI traded at $6.05, up by 2.3%, showing positive market response.
This move represents one of the most significant participations in Uniswap's history, with more than 20% of outstanding UNI participating in the vote.