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Uniswap’s UNIfication Proposal Set to Pass: 100M UNI Burn and Fee Switch Incoming

Uniswap UNIfication Proposal illustration showing UNI token burn and community vote for fee switch activation

As of December 22, 2025, Uniswap’s UNIfication governance proposal has surpassed the 40M UNI quorum, with 69M votes in favor and nearly 100% approval, virtually guaranteeing passage before the December 25 deadline, per gov.uniswap.org and CoinDesk. The proposal, submitted by Hayden Adams on December 18, activates protocol fees on v2/v3 pools, directs revenue to UNI burns, and includes a retroactive 100M UNI treasury burn (~$525M at current prices), reducing supply by 15.8%. Voting runs until December 25, with a 2-day timelock post-approval.

Key Changes and Economic Impact

UNIFication transforms UNI from a governance token to a revenue-sharing asset:

  • Fee Switch Activation: 0.05% for v2 pools, 1/4–1/6 of LP fees for v3, per.
  • Perpetual Burns: Protocol fees and Unichain sequencer revenue fund UNI buybacks and burns, per.
  • Retro Burn: 100M UNI removed immediately, reflecting historical fees, per.
  • Structural Alignment: Merges Uniswap Labs and Foundation under the DUNA framework, with 20M UNI annual growth budget from 2026, per. UNI rallied 19% to $6.16 as voting opened, with $359M daily volume, per CoinDesk.

Community and Market Reaction

The near-unanimous vote (opposition <1,000 UNI) showcases decentralized governance maturity, per. a16z (64M UNI holder) supports passage, per. Uniswap processed $4T lifetime volume, generating $1B+ fees in 2025, now flowing to UNI holders, per. X posts from @haydenzadams celebrate the shift, per. Analysts project 3% implied yield and $10–$12 UNI by mid-2026 under growth.

Investor Outlook

UNI’s RSI at 72 signals strength, with $6.52–$10 targets post-burn, per TradingView. Monitor vote.uniswapfoundation.org and DefiLlama for TVL. Dollar-cost average into UNI with stop-losses below $5.50, or diversify into USDC, per. Follow @Uniswap on X for execution updates. UNIFication positions Uniswap as DeFi’s revenue leader.

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