Uniswap to Burn 100M UNI Following Community Voting

Decentralized crypto exchange Uniswap is set to burn 100 million UNI tokens after a majority of the Uniswap community voted in favor of a fee switch proposal. A part of the proposal would see millions of tokens out of circulation.

In an X post on December 26, 2025, Uniswap founder Hayden Adams called the proposal ‘Unification,’ adding, “After a ~2day vote timelock, 100m UNI will be burned, fee switches will be flipped, labs will turn off frontend fees and focus on the protocol, and more.”

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The proposal was introduced by Uniswap Foundation and Uniswap Labs in November and passed with 99.9% support from the Uniswap community.

Firm support for ‘Unification’

Unification garnered support from the community from the day voting went live on December 20, 2025. This marks one of the biggest overhauls in the exchange’s seven-year history. The proposal required 40 million votes to pass. However, it surpassed almost 70 million votes within two days.

The proposal aims to establish a long-term model for how the Uniswap ecosystem would work, where protocol usage drives UNI burn, and Uniswap Labs focuses on protocol growth.

Fee-driven UNI burn model

From turning on the Uniswap protocol fee to burning UNI tokens, Unification aims to make some significant moves. It aims to activate the fee switch, through which a part of swap fees will be redirected to the protocol to burn UNI tokens continually.

Through this move, the community members expect an appreciation in UNI’s price over the long term by shortening supply. The exchange also plans to burn 100 million UNI tokens from the treasury to make up for those that would have been burned if the system had been in place from the start.

The proposal also includes other key changes, such as the rollout of a new incentive system, Protocol Fee Discount Auctions. The system aims to improve returns by allowing traders to bid for an exemption from the temporary fee.

Price movement on UNI

Uniswap (UNI) is currently trading at $5.80, a 2.01% decline in the last 24 hours, according to CoinMarketCap. This suggests that the price has not been affected much even after the exchange’s proposal. 

Broader context

The Unification vote shows that Uniswap is planning to connect protocol growth with token economics. The community has shown support for a more self-reinforcing model by linking fees directly to UNI burns and streamlining the platform’s focus on infrastructure.

While the current market reaction remains muted, the changes mark a structural shift that could shape the exchange’s trajectory.

Also read: Uniswap Launches CCA for V4 Liquidity & Price Discovery