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Uniswap Opens Vote to Turn On Protocol Fees and Burn 100 Million UNI

Early tallies point to passage, lifting expectations of direct value accrual to UNI holders.

Overview

  • On-chain voting began Dec. 20 and runs until Dec. 25, with about 34.1 million UNI cast in favor and near-zero against as the 40 million quorum approaches.
  • The Unification proposal would activate protocol fees on Uniswap v2 and select v3 pools and route those fees into a programmatic UNI burn mechanism.
  • The plan calls for a retroactive burn of 100 million UNI from the treasury to approximate fees that might have been collected historically.
  • Package elements also formalize alignment among Uniswap Labs, the Uniswap Foundation, and on-chain governance, remove interface fees, and add auctions intended to internalize MEV and improve liquidity provider returns.
  • UNI outperformed the broader market after the vote opened, with reports of roughly 11%–19% intraday gains and prices near $6.27 as traders priced potential value accrual.