Uniswap Removes 100M UNI From Circulation After Fee-Burning Proposal

Uniswap has executed a major token burn, removing 100 million UNI tokens from circulation. This move follows the approval of its fee-burning proposal, which passed with near-unanimous support. The proposal, dubbed "UNIfication," was backed by several crypto heavyweights, including Jesse Waldren and Kain Warwick.

Uniswap's Historic Token Burn

The burn transaction was completed on December 28, reducing Uniswap's token supply by 100 million UNI, worth roughly $596 million at current prices. This marks one of the largest burns ever carried out by a decentralized finance protocol.

Broad Consensus Among Token Holders

The UNIfication proposal passed with 99.9% support, with over 125 million UNI tokens cast in favor and just 742 tokens voting against. This underscores the broad consensus among token holders regarding the proposal.

Key Players Back the Proposal

Several prominent figures in the crypto space backed the UNIfication proposal, including Jesse Waldren, founder of Variant, and Kain Warwick, founder of Infinex and Synthetix.

Update Details

As part of the update, interface fees charged by Uniswap Labs were set to zero, while fees were activated on Uniswap v2 and a selection of v3 pools on Ethereum mainnet. Fees generated by Unichain will flow toward UNI burns after covering Optimism and Layer-1 data costs.

Market Reaction

UNI rose over 5% in the past 24 hours following the burn, with trading volume and market capitalization increasing, according to CoinMarketCap data. The token's circulating supply now stands at roughly 730 million UNI, out of a total supply of 1 billion.

Future Plans

The Uniswap Foundation plans to create a Growth Budget, distributing 20 million UNI tokens to fund development and expansion across the Uniswap ecosystem. The foundation will continue funding builders and grant programs that support protocol development, with helping developers remaining a key priority.

Conclusion

The successful execution of the UNIfication proposal and the subsequent token burn mark a significant milestone for Uniswap. As the protocol continues to evolve, it will be interesting to see how these changes impact its ecosystem and the broader crypto market.