Uniswap proposal receives overwhelming support, tokenomics undergoes a fundamental transformation

The “UNIfication” proposal jointly put forward by Uniswap Labs and the Uniswap Foundation has received overwhelming support from investors, pushing this largest decentralized exchange in the crypto industry into a new development stage. This historic moment marks the transformation of the UNI token from a purely governance tool into a true value-bearing asset, closely linked to the platform’s core business.

Fundamental Transformation of the Token Economy Model

The core innovation of the proposal lies in redefining the economic attributes of the UNI token. Previously, all fees generated by Uniswap flowed directly to liquidity providers, with the UNI token serving only a governance function and lacking a direct economic connection to the platform’s commercial activities. The approval of the “UNIfication” proposal will change this situation — the protocol will begin to collect fees and burn tokens through on-chain mechanisms, establishing a direct link between usage frequency and token supply reduction.

Market Consensus Reflected in Voting Data

During the voting process, the support camp won by an absolute margin. The proposal received over 125 million votes in favor, while only 742 votes opposed, with support exceeding 99%. This fully reflects the broad consensus within the community. The high participation and support during the five-day voting period clearly demonstrate the activity level of Uniswap’s governance system and the community’s recognition of the development direction.

Tiered Burning and Fee Restructuring Plan

To demonstrate the retroactive effect of the proposal, Uniswap has decided to burn 100 million UNI tokens from the treasury, valued at approximately $383 million based on the current market price. This action symbolically compensates for the protocol fees that may have accumulated since Uniswap’s establishment in 2018. Meanwhile, the platform generates an average daily trading volume of about $20 billion, with an estimated annual fee scale of around $600 million based on historical data. A portion of these fees will be incorporated into the burning mechanism.

Market Reaction and Token Price Fluctuations

The market performance of UNI tokens has fluctuated following the approval of the proposal. According to the latest data, UNI is currently priced at $3.83, down 9.44% compared to 24 hours ago. This price adjustment reflects the market’s complex expectations of the long-term impact of the proposal — on one hand, reduced supply is generally seen as a positive factor; on the other hand, the market needs time to digest the deep impact of fee collection on the platform’s economics.

Initiation of the Token Valuation Process

The approval of the “UNIfication” proposal marks an upgrade in the token economics within the Uniswap ecosystem. By linking platform fees with token burns, UNI gradually evolves into a true value carrier — the more active the platform, the more fees generated, and the more tokens burned, which in the long run helps to accumulate value for token holders. This design tightly binds the platform’s success with the prosperity of the token ecosystem, laying a new foundation for the sustainable development of the entire ecosystem.