Uniswap shifts fees to protocol for UNI burn
Uniswap governance approved the UNIfication plan with 99.9% support, activating a protocol fee switch and scheduling a 100 million UNI burn after a two-day timelock.
Uniswap token holders voted to pass the UNIfication proposal, which turns on the protocol’s fee switch and, after a two-day timelock, triggers an immediate burn of 100 million UNI.
The on-chain vote wrapped up Thursday with more than 125 million tokens in favor and 742 against, reflecting 99.9% support, founder Hayden Adams wrote on X. The plan was introduced in November by Uniswap Labs and the Uniswap Foundation.
With the fee switch active, a portion of trading fees that previously went entirely to liquidity providers will be routed to the protocol and burned on an ongoing basis. Net sequencer fees generated on Unichain will flow into the same burn system, reducing UNI supply as activity generates fees.
The measure also reorganizes operations. Teams and responsibilities now housed at the Uniswap Foundation will shift to Uniswap Labs. Labs plans to remove fees from its interface, wallet and API, and an annual growth budget funded in UNI will support protocol development and ecosystem work.
“I believe Uniswap protocol can be the primary place tokens are traded,” Adams wrote on X. “This proposal sets the stage for the next decade of its growth.”
The proposal points to a changed regulatory climate and to broader adoption of decentralized finance. Uniswap has faced scrutiny from U.S. regulators, including the Securities and Exchange Commission.
As we covered previously, Uniswap founder Hayden Adams advanced the UNIfication proposal to a final on-chain vote running Dec. 19–25. The plan phases in fees on v2 and v3, redirecting part of trading fees to the protocol. On v2, LP fees fall from 0.30% to 0.25%, with 0.05% to the protocol; v3 uses fractions of LP fees. Unichain sequencer fees feed the same burn, with potential expansion to L2s, other L1s, v4, UniswapX, MEV routing and aggregator hooks.
The material on GNcrypto is intended solely for informational use and must not be regarded as financial advice. We make every effort to keep the content accurate and current, but we cannot warrant its precision, completeness, or reliability. GNcrypto does not take responsibility for any mistakes, omissions, or financial losses resulting from reliance on this information. Any actions you take based on this content are done at your own risk. Always conduct independent research and seek guidance from a qualified specialist. For further details, please review our Terms, Privacy Policy and Disclaimers.
Articles by this author
