Uniswap just made a huge move that caught the entire crypto market’s attention.
The protocol permanently destroyed 100 million UNI tokens, wiping out about $596 million worth of supply in one shot. Those tokens are gone for good — they can never be used, traded, or sold again.
This happened after Uniswap’s community voted almost unanimously to approve a major governance proposal called UNIfication. The vote passed with a staggering 99.9% approval, showing near-total agreement among UNI holders.
As soon as voting started, the market reacted fast. UNI jumped about 19% during the vote, then climbed another 6% after the burn was completed. Traders clearly saw this as a big deal for the token’s future.
Alongside the burn, Uniswap flipped the switch on protocol fees, which means the system is now officially capturing value for UNI holders. At the same time, Uniswap Labs confirmed that interface fees remain at zero, so regular users aren’t paying extra to trade through the Uniswap app.
The vote itself wasn’t even close. More than 125 million UNI voted in favor, while only 742 UNI voted against. The proposal crushed the required quorum and sailed through.
Uniswap didn’t rush the change either. The team followed a two-day governance timelock before burning the tokens, making the process transparent and predictable.
With protocol fees now active, Uniswap starts collecting a small portion of trading fees to support the ecosystem and fuel future UNI burns. On Uniswap v2, liquidity provider fees drop slightly, with the difference going toward the protocol. On v3, fees are more flexible and adjusted per pool, depending on risk and size.
Looking ahead, more fee sources could be added over time, including Layer 2s, Uniswap v4, UniswapX, and other tools — but each one will need its own governance vote.
Bottom line: Uniswap just reduced supply, turned on real value capture, and proved its governance system works at scale. For UNI holders, this wasn’t just talk — it was action.
