Uniswap: The People's Vault Will Burn Millions of UNI for the New Economy

One of the largest decentralized exchanges in the world has undertaken a historic change. The Uniswap community has surpassed 125 million votes expressing strong support for a proposal to launch a protocol fee and use treasury funds to burn a significant amount of UNI tokens. This decision will transform the soul of UNI, which from a simple voting tool will become a true asset that distributes value from platform activity.

The Decisive Vote of Uniswap Botters

In just five days, the community made a very deliberate decision. The proposal called “UNIfication” — a joint initiative of Uniswap Labs and the Uniswap Foundation — received overwhelming support from token holders. Over 125 million votes supported the measure, while only 742 voted to oppose. The result is a clear mandate from the ecosystem ready to evolve.

Here we see how strong the community’s unity is regarding the future of the protocol. Such a high approval rate demonstrates trust in the strategy outlined by Uniswap governance.

Beginning a New Era for the UNI Token

Until now, UNI has been a governance-only token — used solely for voting and with no direct connection to the platform’s revenue. All fees earned by Uniswap go to liquidity providers, leaving UNI without economic backing in the market.

The new system is different. Under the UNIfication proposal, some portion of protocol fees will be directed into an on-chain burn mechanism. This means every transaction on Uniswap will directly affect the supply of UNI — the more the platform is used, the more tokens will be removed from circulation. It’s an elegant way to link the protocol’s technology with the token’s economics.

The Major Burn from the Treasury

As another step, the treasury — the accumulated resources of the Uniswap community treasury — will burn a total of 100 million UNI. At the current price of $3.94 per token, this amounts to over $390 million. This is not just a number — it’s a retroactive statement of what the value of fees would be if the protocol fee had been active since Uniswap’s inception in 2018.

The decision to use treasury funds for this burn is symbolic and strategic. It demonstrates the foundation’s commitment to promoting a new economic model.

Why This Matters to Uniswap

To better understand the context: Uniswap earns an average of $2 billion in trading volume daily and generates approximately $600 million in fees annually. Under the old system, all these fees go directly to liquidity providers, while the UNI token remains valueless.

Now, with the launch of the protocol fee and the burn mechanism, UNI becomes part of Uniswap’s economic engine itself. Every billion-dollar volume will be a factor influencing the supply — and potentially the price — of the token.

Market Impact

UNI was at $5.92 in the last report, but the latest rate is $3.94, showing a -7.04% change in the past 24 hours. While the price fluctuates, this structural change will take a longer timeline to fully manifest its effects.

Our understanding is that this proposal is a watershed moment for Uniswap — not just an upgrade of features, but a transformation of the UNI token itself from a governance tool into a dividend-bearing asset.