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Uniswap DAO Approves UNIfication, Paving the Way for 100M UNI Burn and Protocol Fee Switch

The package enters a short timelock before on-chain execution that redirects protocol and Unichain sequencer fees into a programmatic burn.

Overview

  • Final tally showed 125,342,017 UNI votes in favor and 742 against, far exceeding the 40 million quorum threshold.
  • After an approximately two-day governance timelock, contracts are scheduled to execute on-chain to burn 100 million UNI from the treasury and activate fee routing.
  • The plan flips on protocol fees across selected pools, including a 0.05% take on v2 trades and tiered shares of v3 LP fees, with proceeds and net Unichain sequencer revenue sent to burn contracts.
  • Uniswap Labs will turn off frontend, wallet, and API fees, while a separate 40 million UNI allocation over two years funds protocol-focused development.
  • Third-party models project roughly $280 million to $700 million in annual UNI burns if activity holds, while some liquidity providers warn fee capture could pressure LP returns and prompt liquidity shifts.