Uniswap’s token absolutely exploded this week, surging 35% after the protocol unveiled a sweeping overhaul that includes activating fees and implementing a perpetual token burn mechanism. UNI jumped 23% in just 24 hours alone.
The “UNIfication” proposal from Uniswap Labs and Foundation aims to finally share the protocol’s massive revenue with token holders. Uniswap generates over $2 billion annually in fees but has never had a mechanism to pass that value to UNI holders, until now.
The plan includes burning roughly 100 million UNI tokens from the treasury retroactively from the exchange’s inception. Token burns permanently remove coins from circulation, reducing supply and potentially increasing the value of remaining tokens.
Peter Chung from Presto called it a game-changer, saying, “Uniswap is the largest and original spot DEX since 2018, generating more than $1 billion in fees annually, but there has not been a mechanism to pass that value to token holders. This proposal, if implemented, will change that.”
Beyond the burn, the overhaul introduces Protocol Fee Discount Auctions for MEV internalization and ends fees for Uniswap’s front-end interface. They’re also launching “aggregator hooks” to turn Uniswap v4 into an on-chain aggregator collecting fees on external liquidity.
Founders said the timing is perfect as DeFi hits an inflection point with changing regulations under Trump and the end of their SEC legal troubles.
Conclusion
Uniswap token surged 35% weekly after the protocol proposed fee activation and perpetual token burn, including a 100 million UNI retroactive burn, finally sharing $2 billion in annual revenue with holders.
Also Read: XRP Jumps
