Uniswap Burns 100M UNI After Vote, Activates Protocol Fees
Uniswap has removed 100 million UNI from circulation after community governance approved its fee-burning initiative, eliminating approximately $596 million worth of tokens at current prices from the protocol’s treasury.
On-chain records indicate the burn was executed at around 4:30 am UTC on Dec. 28, marking the first large-scale application of the governance measure adopted earlier this week, according to analyst EmberCN. The transaction permanently lowered Uniswap (UNI)’s supply and ranks among the largest token burns conducted by a decentralized finance protocol.
The vote to activate the Uniswap protocol fee switch, referred to as “UNIfication,” concluded on Thursday with 99.9% approval. More than 125 million UNI supported the proposal, while 742 tokens voted against it, reflecting broad backing from token holders.
Holders with substantial voting influence who supported the measure included Jesse Waldren, founder and managing partner at Variant; Kain Warwick, founder of Infinex and Synthetix; and Ian Lapham, a former engineer at Uniswap Labs.
Uniswap Labs confirms 100 million burn
Uniswap Labs confirmed the on-chain execution in a post on X, stating that “UNIfication has officially been executed onchain.” As part of the update, Uniswap Labs set its interface fees to zero and enabled fees on Uniswap v2 and select v3 pools on Ethereum mainnet. Fees generated by Unichain will also be directed to UNI burns after covering Optimism and Layer-1 data expenses.
UNI gained more than 5% over the past 24 hours following the burn, with trading volume and market capitalization also rising, according to CoinMarketCap. The circulating supply is now approximately 730 million UNI, out of a total supply of 1 billion.
Uniswap Foundation to allocate 20 million UNI for ecosystem growth
When introducing the proposal, the Uniswap Foundation stated it would continue supporting builders and maintain grant programs that fund protocol development. To advance this objective, the foundation plans to establish a Growth Budget to distribute 20 million UNI for development and expansion across the Uniswap ecosystem.
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