Uniswap to Burn 100M UNI Tokens After Vote

The Uniswap community has voted to approve “UNIfication,” a governance proposal that will alter the protocol’s tokenomics and introduce a new system for burning UNI tokens using revenue collected from trading fees. Over 69 million UNI votes backed the proposal, which includes burning 100 million UNI tokens from the protocol’s treasury. The price of UNI has risen over 25% since voting for the UNification proposal opened earlier this week.

The Uniswap community approved the UNIfication proposal, which includes burning 100 million UNI tokens from the protocol’s treasury. According to the proposal, 100 million UNI tokens would be removed from circulation to account for the tokens that would have been burned if fees were on from the beginning.

Protocol Fee Discount Auctions

The proposal will also roll out a new incentive system called Protocol Fee Discount Auctions, which is expected to help liquidity providers earn more from their trades. A growth budget of 20 million UNI per year will be established to support development, integrations, and partnerships.

The UNIfication proposal aims to tighten tokenomics through automated UNI burns using revenue collected from trading fees. The price of UNI has risen over 25% since voting for the UNification proposal opened earlier this week. When writing, UNI was trading at $6.17 according to CoinGecko, down 1.3% in the past 24 hours.

The Uniswap community voted in favor of the UNIfication proposal to reshape the protocol’s tokenomics and introduce a new system for burning UNI tokens using revenue collected from trading fees. The proposal notes that 100 million UNI from the treasury would be removed from circulation to account for the tokens that would have been burned if fees were on from the beginning.

The exact timeline for the activation of protocol fees and the commencement of automated UNI burns is currently unknown, with only a two-day time lock specified before these actions begin.

Following the two-day time lock, protocol fees will be activated, and automated UNI burns will begin. The proposal will also introduce several structural changes and a growth budget of 20 million UNI per year to support development, integrations, and partnerships. The implementation of the Protocol Fee Discount Auctions is expected to help liquidity providers earn more from their trades.