Nov 12, 2025
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Uniswap Proposes Protocol Fees Activation, UNI Token Surges Over 50%
Uniswap founder Hayden Adams announced a major governance proposal to activate protocol fees, significantly impacting the market. UNI's price surged over 50% after the announcement, indicating renewed investor optimism.
Key Points of the Governance Proposal
- Activate protocol fees directing them towards UNI burns to create a sustainable value mechanism.
- Send Unichain sequencer fees to the UNI burn and burn 100 million UNI from the treasury.
- Introduce Protocol Fee Discount Auctions to enhance liquidity provider outcomes and capture miner extractable value (MEV) for the protocol.
- Implement "aggregator hooks" in Uniswap v4 to collect fees from external liquidity sources.
- Uniswap Labs will focus solely on protocol growth and governance initiatives, ceasing fee collection on its interface, wallet, and API.
- Merge Foundation employees into Labs under a new growth fund and move governance-owned Unisocks liquidity to v4 on Unichain.
Some analysts view the proposal as a response to competition from rivals like Aerodrome Finance, marking both a strategic pivot and a defensive measure to maintain Uniswap’s dominance in DeFi.
UNI Price Surge Analysis
- UNI token surged nearly 50%, climbing from $5.80 to above $10.30, stabilizing near $8.20.
- Trading volume increased sharply, reflecting strong market participation and investor confidence.
- UNI reclaimed the 50-day and 100-day moving averages, but faces resistance at the 200-day moving average near $9.50–$10.00.
- The volume profile indicates significant accumulation pressure beneath $6, suggesting a potential medium-term accumulation phase.
