Every once in a while, a project makes a move that doesn’t just tweak the system, it rewrites the playbook.
That’s exactly what Uniswap just did.
With 99.9% of voters backing the “UNIfication” proposal, Uniswap governance approved a sweeping change that pushes the protocol toward something crypto hasn’t seen at scale yet:
👉 A truly deflationary token model.
Over 125 million tokens voted “yes.” Only 742 said “no.” That’s not a debate, that’s a mandate.
The Uniswap Unification proposal has passed by an overwhelming majority.
— CryptoELlTES (@CryptooELITES) December 26, 2025
• 100 million UNI tokens will be burned
• The fee switch will be activated
This is a major structural change for Uniswap.
Do you see this as a long-term positive for Uniswap, or is the market already… pic.twitter.com/9685panPLj
So… What Actually Changed?
Uniswap Founder Hayden Adams confirmed the vote on X, and the details are big.
Here’s the short version:
Instead of all trading fees going straight to liquidity providers, a portion now flows into a burn mechanism.
That means:
- More trades → more fees
- More fees → more burns
- More burns → less UNI in circulation
And it doesn’t stop there.
Net sequencer fees from Unichain will also feed into the burn, creating a powerful loop where protocol growth literally shrinks supply.
That’s classic supply-and-demand economics, applied to DeFi.
Consolidation, Simplification, and Focus
The proposal also streamlines Uniswap’s internal structure:
- The Uniswap Foundation transitions responsibilities to Uniswap Labs
- Fees are removed from Labs’ interface, wallet, and APIs
- An ongoing growth budget funds ecosystem expansion
Translation?
Less friction. Clearer direction. Faster execution.
A 100 Million Token Burn And a Message to the Market
Once the two-day timelock ends, Uniswap will burn 100 million UNI tokens.
This isn’t symbolic.
It represents roughly what might have already disappeared if the fee switch had existed since day one.
Hayden Adams believes this positions Uniswap to become the default place tokens are traded over the next decade — and he’s not shy about saying so.
Context Matters: From Regulatory Heat to Mainstream Momentum
Uniswap has faced legal scrutiny in the past, especially during Gary Gensler’s SEC tenure.
But the team now believes the environment is shifting:
- DeFi is maturing
- Users are more educated
- Institutional interest is growing
And Uniswap is betting big on that momentum.
The Market Reaction
As of Thursday evening:
💰 UNI trades at $5.92
📈 Up 18.9% over the past week
💵 Over $1.05 billion in fees generated in 2025
That’s not hype , that’s usage.
Why This Matters (Even If You’re Not Deep Into Uniswap)
This proposal signals something bigger:
➡️ Protocols aren’t just competing on features anymore
➡️ They’re competing on economic design
And as supply goes down while adoption climbs, UNI holders and the broader DeFi ecosystem will be watching closely.
Because this move doesn’t just change Uniswap.
It could reset expectations for how decentralized protocols reward participation, growth, and long-term value.
