Uniswap begins a key vote on burning 100M UNI and the fee collection mechanism

Decentralized exchange Uniswap has entered a groundbreaking phase of its development. The UNIfication proposal, presented by founder Hayden Adams on December 18, 2025, outlines a comprehensive plan regarding protocol governance, its economic structure, and legal frameworks. The voting runs from December 19 to 25, marking a pivotal moment for UNI token holders.

Token Burn and Revenue-Value Linkage

The core of the proposal involves a seven-year retrospective — burning 100 million UNI from the reserve, representing the revenues that could have been accumulated if protocol fees had been active since launch. This action would reduce the total circulating supply from approximately 630 million to around 530 million tokens.

The plan also includes the long-awaited fee switch for Ethereum mainnet. Currently, all fees go to liquidity providers. The new mechanism would redirect 0.05 percentage points from v2 and a quarter of the v3 fee pool to the “token jar” smart contract. Holders who burn UNI could withdraw an equivalent amount in cryptocurrency, creating a direct link between token value and ecosystem revenues.

Alongside this, expert burn reports track potential supply reduction scenarios. By integrating the sequencer fees with Unichain (, considering costs and allocation on Optimism) for the same burn mechanism, the protocol would strengthen the value dynamics in each transaction.

Uniswap also plans to introduce a Protocol Fee Discount Auction (PFDA), bidding for the right to trade fee-free. Winning bids would go into the burn system, internalizing the value extracted by MEV.

Structural Governance Transformation

In addition to economic changes, UNIfication recommends shifting key functions of the Uniswap Foundation — supporting the ecosystem and facilitating governance — to Uniswap Labs. In return, Labs would cease charging fees for the interface, wallet, and API, formally committing to compliance with DUNI, the legal entity representing governance.

Legal certainty comes from Wyoming legislation regarding Decentralized Unregistered Nonprofit Associations (DUNA). DUNI, as a recognized legal entity, enables DAO to hold assets, sign contracts, and obtain liability protection while maintaining decentralization. A binding service agreement between Labs and DUNI ensures that actions are always aligned with token holder interests.

Market Dynamics and Favorable Reception

The market responded positively to the presented plan. After the announcement, UNI rose about 5 percent to approximately $5.23, with trading volume increasing over 80 percent. The current token price is $4.81, with a 24-hour change of -3.80 percent.

Proponents of the proposal argue that burning and fee collection will create a more stable link between Uniswap’s success and the price of UNI. With a trading volume exceeding four trillion dollars, even marginal fees could generate significant revenue. Investors are positioning themselves ahead of the vote, anticipating a potential supply shortage upon adoption.

Delegates’ votes will be decisive. Payden Adams urged participants to actively engage, warning against being left out of the main ecosystem. Through the formal DUNA framework and community involvement, Uniswap is building a bridge between decentralized decision-making and enforceability off-chain.