Uniswap’s ‘UNIfication’ Fee Switch Set to Go Live After Vote
Uniswap’s protocol fee switch, known as “UNIfication,” is expected to activate later this week after clearing the 40 million-vote threshold required for approval, marking one of the most significant upgrades in the decentralized exchange’s seven-year history.
As of early Monday, nearly 62 million votes had been cast in favor of the UNIfication proposal since voting opened on Dec. 20. The governance vote is scheduled to close on Thursday, Christmas Day.
Uniswap Labs CEO Hayden Adams said Thursday that if the proposal passes, a two-day timelock will precede the activation of fee switches for Uniswap v2 and v3 on the Unichain mainnet, a change that will initiate additional burns of Uniswap (UNI) tokens.
The plan includes burning 100 million UNI from the Uniswap Foundation’s treasury and introducing a Protocol Fee Discount Auctions mechanism aimed at improving returns for liquidity providers.
The adjustments are intended to enhance UNI’s supply-demand profile and strengthen its long-term holding appeal.
UNI has risen approximately 25% since voting began and is trading around $6.08, rebounding from a broader market downturn that had pushed the token to a seven-month low of $4.88.
Change in UNI’s price over the last week. Source: CoinGecko
News of the UNIfication initiative in early November triggered a rally of nearly 40% in UNI, moving from roughly $7 to $9.70 on Nov. 11.
Uniswap remains the largest decentralized exchange, with cumulative trading volumes exceeding $4 trillion since its November 2018 launch. According to CoinGecko, UNI is the 39th-largest crypto asset by market capitalization at $3.8 billion.
Major tokenholders support UNIfication proposal
Several prominent figures with substantial voting power have backed the initiative, including Jesse Waldren, founder and managing partner at crypto-focused venture firm Variant; Kain Warwick, founder of Infinex and Synthetix; and Ian Lapham, a former Uniswap Labs engineer.
Only 741 votes, or about 0.001% of total votes cast, have opposed the measure so far, while a little over 1.5 million votes have abstained.
Vote distribution for the UNIfication proposal as of late Sunday. Source: Uniswap
Protocol development remains a priority, foundation says
When the proposal was introduced, the Uniswap Foundation said it would continue awarding grants to support protocol development and ecosystem growth, emphasizing that builder support would remain a core focus.
To fund these efforts, the foundation plans to establish a Growth Budget that will allocate 20 million UNI tokens.
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