Uniswap approved the introduction of fees and mass token burning in a historic vote

The “UNIfication” proposal received unprecedented support from Uniswap voters, gathering over 125 million votes in favor against just 742 objections. This initiative will radically transform the platform’s economy by linking protocol fee introduction with an automatic UNI token burn mechanism, turning it from a purely governance tool into an asset that accumulates value.

Revolutionary Fee Model for the Leading DEX

Until now, Uniswap directed all fees to liquidity providers, leaving UNI solely as a governance token without direct participation in the platform’s revenue. With the adoption of the new proposal, a portion of the fees will be redirected into an on-chain burn mechanism, directly tying protocol activity to a reduction in token supply.

Every day, approximately $2 billion in trading volume passes through Uniswap, generating around $600 million in annual fees. The new fee system will reshape cash flow dynamics, allowing UNI holders to benefit economically from using the decentralized exchange for the first time.

Massive Burn: A Historic Reimagining of Value

As a retroactive measure, 100 million UNI tokens worth over $590 million at current rates will be burned from the Uniswap treasury. This step symbolically reflects the fees that would have accumulated since the platform’s inception in 2018 if the fee system had been in place from the start.

Introducing protocol fees directly links platform usage to a reduction in UNI supply, creating potential for sustainable token value growth. The more trading volume passes through Uniswap, the more tokens will be burned, enhancing the deflationary effect.

Market Reaction and Current Situation

At the time of the proposal’s adoption, UNI token was showing an upward trend. However, according to the latest data (as of February 1, 2026), the UNI price is $3.93, down 4.50% over the past 24 hours, reflecting current market volatility.

The five-day voting process demonstrated unanimous community support for the fee and burn mechanism transformation, opening a new era in the development of the leading decentralized exchange.