Uniswap Community Approves Major Protocol Economic Reform

The vote on the UNIfication proposal concluded with a 99.9% approval, announced Uniswap founder Hayden Adams.

Voting has concluded on Unification 🦄

125,342,017 YES
742 NO

Unified, true to the name

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

Merry Christmas everyone 🎄 https://t.co/wpsEC8udlW pic.twitter.com/P0rJmLN9Cc

— Hayden Adams 🦄 (@haydenzadams) December 25, 2025

The initiative received over 125 million UNI tokens in favor, with 742 against.

UNIfication activates the “fee switch.” This mechanism will redirect a portion of trading fee revenues to the protocol, which previously went entirely to liquidity providers.

Revenues from the L2 network Unichain sequencer will also be directed to the UNI burning mechanism, after deducting L1 costs and Optimism allocations.

This effectively creates a “deflationary loop”: as protocol usage increases, the coin supply decreases.

The initiative has entered a two-day waiting period. Following this, Uniswap will burn 100 million UNI—an amount equivalent to the hypothetical protocol fees had the “fee switch” been active since the asset’s inception.

The project’s implementation was delayed for years due to the firm stance of the SEC under Gary Gensler.

UNIfication will also consolidate all operations: the team and responsibilities of the Uniswap Foundation will transfer to Uniswap Labs. Interface fees will be abolished. Wallets and API services will have an annual development budget funded by UNI tokens.

“I believe the Uniswap protocol can become the primary venue for token trading. This proposal lays the foundation for its growth over the next decade,” commented Adams.

The crypto community hailed the approval of UNIfication as a turning point for DeFi. According to ether.fi CEO Mike Silagadze, the key trend will be a focus on revenues and other fundamental project metrics.

“Tokens with well-designed value capture mechanisms will significantly outperform the rest,” he stated.

In the past 24 hours, the price of UNI rose by 2.9%. At the time of writing, the asset is trading at $5.9.

Back in November, Uniswap introduced the Continuous Clearing Auctions solution for fair pricing in new token issuance.