Uniswap has turned its vision into reality by finally implementing a much-debated fee-burning proposal and consequently wiping out 100 million UNI tokens from its treasury, thus permanently removing them from circulation. The value of the burned tokens, at current market prices, is approximately $596 million.
As per the onchain data, the burn was carried out approximately at 4:30 am UTC on December 28. The act is said to be the first large-scale governance decision that was approved earlier this week, by onchain analyst EmberCN. The burn not only lowers the total supply of UNI but also ranks amongst the biggest burns done by a decentralized finance protocol.
The “UNIfication” proposal or the Uniswap protocol fee switch, as it is commonly called, was approved on Thursday with a landslide of votes in support. Over 125 million UNI tokens were cast in favor of the measure, while only 742 tokens were against it, which reveals that the community is almost unanimous in its approval.
Jesse Waldren, the founder, and managing partner at Variant; Kain Warwick, the founder of Synthetix and Infinex; and Ian Lapham, a previous engineer at Uniswap Labs, are some of the prominent crypto personalities who have openly endorsed the proposal.
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Uniswap UNIfication Goes Live as Fees Shift to UNI Burns
Uniswap Labs made it public in a post on X that the plan is now a reality, stating that “UNIfication has officially been executed onchain.” The announcement signified the complete implementation of the much-anticipated governance decision.
After the update, Uniswap Labs decided to eliminate the fees that were previously charged through the interface. In addition, protocol fees were turned on for Uniswap v2 and certain v3 pools on the Ethereum network. Also, a portion of the fees earned on Unichain will be allocated to the future burns of the UNI token, after settling the Optimism and Layer-1 data costs.
The market responded positively. In the last 24 hours, UNI increased its price by more than 5%.
