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    Uniswap Price Surges 40% After UNIfication Proposal Unveils Token Burns and Fee Activation

    • currency-symbol UNI $ 8.44 (25.46%) top gainer
    Story Highlights
    • Uniswap introduces UNIfication proposal to activate protocol fees and launch a UNI-burning system.

    • UNI token price surges 40%, reaching $10 after Uniswap reveals its major proposal.

    • Uniswap may generate $38 million monthly through buybacks under its new fee structure.

    Uniswap, the largest and first-ever decentralized exchange, launched in 2018, has just made a big move. The platform has submitted its first governance proposal called “UNIfication,” introduced by founder Hayden Adams aims to activate protocol fees and use them to burn UNI tokens.

    Following this announcement, UNI’s price surged nearly 40%, touching a day high of $10.

    Uniswap UNIfication Proposal 

    Uniswap founder Adams has proposed a major upgrade called UNIfication, aiming to activate protocol fees for the first time and introduce a UNI-burning system. The plan seeks to reward both liquidity providers and token holders while turning Uniswap into a self-sustaining ecosystem.

    The proposal also suggests burning 100 million UNI from the treasury as a retroactive burn, representing tokens that could have been burned if fees had existed earlier.

    Additionally, Uniswap plans to launch Protocol Fee Discount Auctions, allowing users and LPs to bid for fee-free trading periods, adding more utility and engagement to the platform.

    Uniswap Massive Buyback Plan

    Adding depth to the conversation, MegaETH Labs member BREAD estimated the potential impact of the proposal. If Uniswap adjusts its 0.3% trading fee by allocating 0.25% to LPs and 0.05% to UNI buybacks, it could generate around $38 million in monthly UNI buybacks, based on $2.8 billion in annualized fee revenue.

    This would place Uniswap’s projected buyback strength above PUMP’s $35 million and just below HYPE’s $95 million, making it one of the most profitable decentralized projects today.

    Community Vote Awaits Final Approval

    This proposal goes beyond just numbers, it marks a big step forward for Uniswap’s governance model. It shows that decentralized protocols can run smoothly while benefiting both users and investors.

    If approved, UNIFication could lay the groundwork for long-term value growth, possibly making UNI one of the most deflationary assets in DeFi.

    The proposal still awaits community approval, with a 22-day process that includes comments, voting, and final execution.

    Uniswap UNI Token Jump 30% 

    Uniswap’s native token, UNI, soared nearly 40% after the UNIfication proposal, hitting a two-month high of around $8.81. Meanwhile, the RSI has also climbed above 74, signaling strong buying momentum.

    Analysts expect a bullish outlook, with the next resistance near $12, though a short pullback to around $8 could occur before the next rally.

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    FAQs

    What is Uniswap’s new UNIfication proposal?

    It’s a plan to activate protocol fees, burn UNI tokens, and introduce features that reward both liquidity providers and UNI holders.

    How will the UNIfication upgrade affect UNI token supply?

    The proposal includes a system to burn ongoing fees and a one-time burn of 100 million UNI, which could make the token more deflationary.

    How could Uniswap’s fee changes impact buybacks?

    If fees are adjusted as proposed, Uniswap could generate tens of millions in monthly UNI buybacks, strengthening long-term value.

    Why did UNI price surge after the proposal?

    The plan signals stronger token economics and future value, driving buying interest and pushing UNI to its highest levels in months.

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