The Uniswap community has made a big decision — and it could change how UNI works for the long run.
A clear majority of UNI holders have voted yes on a proposal called “UNIfication.” The vote wasn’t even close.
More than 69 million UNI tokens were used to support the proposal, far above the 40 million votes needed to pass. The required quorum was reached in less than three days after voting opened on December 20, and the vote is set to officially close on December 25.
With such strong support, the proposal is expected to go live after a mandatory two-day timelock. Once that ends, Uniswap will turn on protocol fees and start automatically burning UNI tokens, beginning on the Unichain mainnet and later expanding to other pools.
So what does UNIfication actually do?
At its core, it’s about reducing UNI supply over time.
Uniswap will use revenue earned from trading fees to buy back UNI and burn it, permanently removing tokens from circulation. On top of that, 100 million UNI will be burned directly from the protocol’s treasury. These tokens are meant to represent the UNI that “would have been burned” if fees had been active from the start.
The proposal also introduces a new system called Protocol Fee Discount Auctions. The goal here is simple: help liquidity providers earn more from their trades while keeping the system competitive.
There are also some big structural changes.
The responsibilities of the Uniswap Foundation will be moved to Uniswap Labs, and a new growth budget of 20 million UNI per year will be set aside. That money will be used to support development, integrations, and partnerships across the ecosystem.
Not surprisingly, the market reacted fast.
Since voting opened, UNI’s price jumped more than 25%, helped by strong retail buying and growing interest from large holders. That said, the wider crypto market has been shaky, and UNI hasn’t been immune.
At the time of writing, UNI is trading around $6.17, down about 1.3% over the past 24 hours, according to CoinGecko.
Even with short-term price swings, one thing is clear:
UNIfication marks a major shift for Uniswap — turning fees into value, tightening supply, and giving UNI a clearer long-term role in the protocol’s future.
