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- Uniswap plans a 100 million UNI token burn tied to new fee reforms.
- UNIfication merges Labs and Foundation under one governance model.
- The proposal could reshape decentralized governance and token economics.
Uniswap Labs and the Uniswap Foundation have introduced UNIfication, a sweeping proposal that could redefine how the world’s leading decentralized exchange operates. The plan focuses on governance reform, UNI token burns, and a unified strategy for the platform’s long-term growth.
A Unified Future for Uniswap
Announced on November 11 after a brief early leak, the UNIfication proposal marks Uniswap’s most ambitious transformation since launching the UNI token in 2020. The initiative merges Uniswap Labs and the Uniswap Foundation under one coordinated structure led by a five-member board, including founder Hayden Adams and key ecosystem contributors.
The goal is simple yet profound: to make Uniswap the primary exchange for tokenized assets, driven by transparent governance and sustainable incentives.
100 Million UNI Burn and Fee Reforms
Central to the proposal is a retroactive burn of 100 million UNI tokens from the treasury—representing what could have been burned if protocol fees had been active since inception. This move aims to tighten token supply and reward long-term holders.
The plan also introduces a new mechanism called Protocol Fee Discount Auctions, where traders can bid for reduced fees. The collected fees would feed into the UNI burn system, enhancing the token’s deflationary nature. Additionally, revenue generated by Uniswap’s Layer-2 network, Unichain, will now contribute to this burn mechanism.
Shifting the Business Model
Under UNIfication, Uniswap will stop monetizing its main products—the interface, wallet, and API. Listing fees will be removed entirely, aligning the project’s revenue model directly with UNI holders’ interests. From 2026 onward, Uniswap governance will allocate a 20 million UNI annual budget to fund ecosystem growth and development.
Also Read: Uniswap Just Added Solana — Here’s Why It Could Transform DeFi Forever
This shift aims to ensure permanent, transparent funding for innovation while removing friction between user adoption and token utility.
If approved by the DAO, UNIfication could set a new standard for decentralized governance. By merging its core teams and aligning incentives across the ecosystem, Uniswap is signaling a future built on efficiency, transparency, and shared ownership — a move that may reshape DeFi’s governance landscape.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
