- Uniswap governance approved the UNIfication proposal with 99.9% support.
- The vote activates the protocol fee switch, routing trading fees to ongoing UNI burns.
- A one-time burn of 100 million UNI will execute after a two-day timelock.
Uniswap governance has approved the UNIfication proposal, pushing the protocol into a new economic phase. Voting closed on Thursday with 99.9% support, according to Hayden Adams. More than 125 million UNI voted in favor, with just 742 tokens against, far above the required quorum.
The proposal was introduced in November by Uniswap Labs and the Uniswap Foundation. It represents the most significant governance change in Uniswap’s history.
Fee Switch Activates Deflation Model
UNIfication turns on the long-planned protocol fee switch. A portion of trading fees will now flow to the protocol instead of going entirely to liquidity providers. Those fees will be used to burn UNI.
Net sequencer fees from Unichain will also be routed into the same burn system. The result is a direct link between protocol usage and supply reduction. Higher trading volume means more UNI removed from circulation.
After a two-day timelock, Uniswap will execute a one-time burn of 100 million UNI. The figure estimates how much UNI would have been burned if the fee switch had existed since launch.
Structural Changes and Legal Alignment
Moreover, UNIfication consolidates Uniswap’s operations. Foundation teams and responsibilities move under Uniswap Labs. Interface, wallet, and API fees from Labs will be removed.
The proposal also sets up a recurring growth budget funded by UNI to support long-term development rather than short-term incentives. A new legal structure using Wyoming’s DUNA framework aligns Uniswap Labs, the Foundation, and on-chain governance under one entity.
The governance package includes Protocol Fee Discount Auctions, designed to improve liquidity provider returns while keeping protocol-level value capture intact.
Several large UNI holders backed the proposal, including Jesse Waldren, Kain Warwick, and former Uniswap engineer Ian Lapham.
The vote follows years of regulatory pressure on DeFi under former SEC Chair Gary Gensler. Now, under the pro-crypto administration of President Donald Trump, crypto businesses are thriving with the SEC dropping all probes against crypto firms.
Related: Uniswap’s UNInception: Why the Protocol Is Finally Turning On the Fee Switch
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Source: https://coinedition.com/uniswap-community-passes-unification-proposal-with-strong-backing/
