Uniswap’s proposal to activate protocol fees and burn UNI tokens received overwhelming support from voters. The initiative will transform the token into a value-accruing asset and link protocol usage to token supply reduction. The proposal received more than 125 million votes in support over the five days of voting, with just 742 dissenting. A full 100 million UNI from the treasury — worth over $590 million at current rates — will also be burned in a retroactive move intended to reflect fees that could have accrued had protocol fees been active since Uniswap’s creation in 2018.
The UNI token has gained 2.5% in the past 24 hours to $5.92. Some of those fees will now be routed to an onchain mechanism designed to burn the tokens, directly linking protocol usage to token supply reduction and potentially boosting the market price. Uniswap sees an average of about $2 billion a day in trading volume and generates an annualized $600 million in fees, according to DeFillama data. Until now, it has routed all the fees to liquidity providers, leaving UNI as a governance-only token with no direct economic link to the platform’s activity.
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