The majority of the Uniswap community has voted in favor of “UNIfication,” a governance proposal that will reshape the protocol’s tokenomics and introduce a new system for burning UNI tokens using revenue collected from trading fees.
Summary
- Over 69 million UNI votes have backed the UNIfication proposal.
- A two-day time lock will follow before protocol fees are activated and automated UNI burns begin.
- 100 million UNI tokens will be burnt from the protocol’s treasury.
As of presstime, the proposal has over 69 million votes in favor of the sweeping tokenomics overhaul, much higher than the 40 million vote threshold that was required for the measure to pass. The Uniswap community had been eagerly anticipating the vote, and the quorum was met less than three days after voting opened on Dec. 20. The process is set to close on Dec. 25.
With such a strong majority in favor, the proposal is expected to go live after a mandatory two-day timelock period, following which the protocol fee switch would be enabled on the Unichain mainnet and subsequently rolled out across supported pools.
At its core, the UNIfication proposal aims to tighten UNI’s long-term supply by setting up an automated system that uses protocol earnings to regularly buy back and burn tokens.
A total of 100 million UNI from the treasury would be removed from circulation to account for the tokens that “would have been burned if fees were on from the beginning,” the proposal notes.
At the same time, the proposal would roll out a new incentive system called Protocol Fee Discount Auctions, which is expected to help liquidity providers earn more from their trades.
The proposal will also introduce several structural changes by transferring the responsibilities of the Uniswap Foundation to Uniswap Labs. Furthermore, a growth budget of 20 million UNI per year will be established to support development, integrations, and partnerships.
UNI price rallies
UNI price has risen over 25% since voting for the UNification proposal opened earlier this week.
As previously reported by crypto.news, retail buying activity, as well as increased demand from large token holders, has helped support the recent price gains.
However, the token faced some headwinds over the past few days in response to the ongoing crypto market downturn that has seen leading cryptocurrencies plunge below key levels. When writing, UNI was trading at $6.17 according to CoinGecko, down 1.3% in the past 24 hours.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
SafePal Integrates Uniswap to Enhance With In-Wallet Swaps
SafePal has partnered with Uniswap to enhance in-wallet token swapping, providing deeper liquidity and a smoother DeFi experience. This integration allows users to trade directly from the SafePal wallet, reducing reliance on centralized exchanges and improving security.
BlockChainReporter03-19 05:04
Uniswap adds support for the stablecoin public chain Tempo and launches a multi-token payment feature
Gate News reports that on March 19, Uniswap added support for stablecoin public chain Tempo. Meanwhile, the "pay with any token" feature in Uniswap API and Tempo machine payment protocol has officially launched and is now available.
GateNews03-19 04:01
Ethereum governance tool Tally ceases operation, Uniswap and Arbitrum are seeking new alternatives
Cryptocurrency governance tool Tally announced its closure on March 17 after operating for over five years. Tally had provided governance infrastructure for multiple Ethereum protocols, handling over $1 billion in transactions. The shutdown was attributed to poor market timing and failure to fulfill token promises, reflecting the commercialization challenges of DAO governance tools. Despite these challenges, the DAO concept continues to evolve, with future development potentially shifting toward diversified infrastructure construction.
MarketWhisper03-18 02:01
Uniswap’s UNI Is Consolidating Inside a $0.30 Range With a 30% Move Waiting on Either Side
UNI is sitting at $3.94 and going nowhere fast. That’s not necessarily a bad thing, depending on which way it resolves. The four-hour chart shows an ascending triangle forming since mid-February, with price compressing between horizontal resistance at $4.10 and a rising support trendline currently s
BlockChainReporter03-16 01:04
MetaMask integrates Uniswap API to upgrade wallet swapping, supporting liquidity across more than 16 blockchains
MetaMask announced the integration of Uniswap API to improve the liquidity and pricing efficiency of its built-in swap feature. Users can directly access Uniswap's liquidity infrastructure across 16 blockchains to facilitate efficient token exchanges. This integration supports multiple versions of the Uniswap protocol, increasing transaction speed and reducing slippage, thereby enhancing cross-chain trading efficiency. The integration remains free of charge, supporting the development of a decentralized trading ecosystem.
GateNews03-12 08:41
