Uniswap News Today: Uniswap’s Token Burn Approach Boosts Alignment of Interests, Triggers 30% Price Jump

Uniswap Suggests Automated Token Burn,

Soars

Uniswap Labs and the

Foundation have introduced an ambitious governance initiative called "UNIfication," designed to overhaul the decentralized exchange’s token economics and governance model, sparking a notable surge in the token price. , the plan aims to implement protocol fees, burn a substantial amount of UNI tokens, and bring core teams together under a single growth vision. This announcement pushed UNI , as market participants responded to the prospects of a lower token supply and improved incentives.

A key aspect of the proposal is the introduction of a protocol fee system, which would allocate a share of trading fees—across both the

mainnet and Uniswap’s layer-2 solution, Unichain—toward a UNI burning mechanism. This includes a one-time burn of 100 million UNI from the treasury, reflecting what would have been destroyed if the fee system had been active since UNI’s debut in 2020. , enabling users to compete for fee discounts while capturing maximum extractable value (MEV) and speeding up the token burning process.

The governance revamp goes beyond tokenomics. Uniswap Labs, the protocol’s main developer, will integrate the Uniswap Foundation’s ecosystem teams, forming a five-person board led by co-founders Hayden Adams, Devin Walsh, and Ken Ng. The new structure also ensures Uniswap Labs will not monetize its interface, wallet, or API, with all future earnings linked to the interests of UNI holders. “These products already generate considerable organic activity for the protocol,”

.

The strong market reaction highlights the importance of these updates. UNI’s 30% jump signals investor confidence in a tighter supply and greater value for token holders. The proposal addresses long-standing requests from UNI community members for a “fee switch” to redirect trading fees to the treasury or directly to holders.

a sustainable framework for the Uniswap ecosystem: one where protocol activity fuels UNI burning and a unified team drives protocol advancement and expansion.

Nonetheless, regulatory uncertainty continues to loom over the plan.

, especially during the tenure of former SEC Chair Gary Gensler, as a factor in postponing the fee switch. This development comes as Uniswap faces ongoing attention from U.S. regulators while striving to become the “go-to exchange for tokenized assets.”

With the proposal now up for a governance vote, its approval could reshape Uniswap’s position in the DeFi sector. If adopted, the changes would not only restrict token supply but also establish a more cohesive organizational model, potentially serving as an example for other decentralized projects seeking to balance expansion and governance.