Uniswap Labs and Uniswap Foundation’s “UNIfication” proposal to enable protocol fees for the largest decentralized exchange in crypto and burn millions of UNI received overwhelming voter support, transforming the token from a mere governance mechanism to a value-added asset.
The proposal received more than 125 million votes in support during the five days of voting, with only 742 dissenting.
Uniswap sees an average of about $2 billion a day in trading volume and generates an annual $600 million in fees, according to DeFillama data. Until now, it has directed all fees to liquidity providers, leaving UNI as a token that can only be managed without any direct financial connection to the platform’s activity.
Some of these fees will now be directed to an onchain mechanism designed to burn tokens, directly linking protocol usage to token supply reduction and potentially increasing the market price. As much as 100 million UNI from the treasury – worth over $590 million at current rates – will also be burned in a retroactive move to reflect fees that could have accrued if protocol fees had been active since Uniswap’s creation in 2018.
The UNI token has risen 2.5% in the past 24 hours to $5.92.
Read more: Uniswap proposes sweeping ‘UNIfication’ with UNI burning and protocol fee overhaul
