The “UNIfication” proposal by Uniswap Labs and the Uniswap Foundation to activate protocol fees and burn millions of UNIs on the largest cryptocurrency decentralized exchange received overwhelming support from voters, transforming the token from a pure governance mechanism into a value-added asset.
The proposal received more than 125 million votes in favor and only 742 votes against in five days of voting.
According to data from Dellama, Uniswap has an average daily trading volume of approximately US$2 billion and annualized fees of US$600 million. So far, it has passed on all fees to liquidity providers, making UNI a governance-only token with no direct economic ties to platform activity.
Some of these fees will now be transferred to on-chain mechanisms designed to burn tokens, directly linking protocol usage to reduced token supply and potentially increasing market prices. Fully 100 million UNI from the Treasury (worth over $590 million at current exchange rates) will also be burned in a retroactive action designed to reflect fees that may have been incurred when protocol fees were active since Uniswap’s creation in 2018.
The UNI token has gained 2.5% in the past 24 hours to $5.92.
Read more: Uniswap proposes full ‘unification’ with UNI burn and protocol fee reform