UNI is about to undergo an important governance transformation. According to the proposal plan, the "UNification" proposal will be put to a community vote on December 25th, involving two core reforms.

**Activation of the Deflation Model**

The first level of reform in the proposal is a one-time burn of 100 million UNI tokens, accounting for approximately one-sixth of the current circulating supply. This scale of burn will directly alter the token’s scarcity expectations. Additionally, the proposal plans to activate a fee switch mechanism—future revenues generated by the DEX protocol will be used for continuous buybacks and burns of UNI. As a result, UNI’s role will undergo a fundamental shift: from a simple governance token to an asset capable of capturing the protocol’s real revenue, similar to earning dividend rights.

**Logic of Value Reconstruction**

From market performance, the price actually declined after the positive news was announced. On-chain data shows that large holders are strategically positioning during the retail investors’ wait-and-see period. This phenomenon of "price decline on good news" is not uncommon in the crypto market and often reflects the complexity of market pricing mechanisms—mismatch between short-term sentiment and long-term fundamentals.

**Competitive Advantage Analysis**

Uni’s position in the DEX sector remains solid. Its trading volume ranks at the top of the entire space, providing liquidity advantages that lay the foundation for sustainable development of the protocol. Additionally, subsequent upgrade plans such as V4 are still awaiting full market pricing.

The current price point of $6 could be a mid-term adjustment phase, but it is also important to watch how the subsequent voting results will truly influence market expectations. Whether the proposal passes and how the implementation pace unfolds will be key variables in determining the future trend.