Uniswap Activates "UNIfication": Proposal on Fees and Burning 100 Million UNI Sparks Sharp Price Surge

Uniswap, the leading decentralized exchange (DEX) on Ethereum, is on the verge of significant changes thanks to the new "UNIfication" proposal, which involves activating protocol fees and a massive burn of UNI tokens. This initiative, proposed by Uniswap Labs and Uniswap Foundation, has already led to a UNI price increase of over 50-70% in the last week, lifting it to around $7.8.

The proposal, published on November, aims to transform Uniswap from a simple exchange tool into a sustainable platform with real value capture for token holders.

• For the first time in the protocol's history, fees will be enabled - 0.05% from each swap (out of the total 0.3% fee, where 0.25% goes to liquidity providers (LP)). These funds will be directed towards buying and burning UNI, creating deflationary pressure on the token.
• As a symbolic "reset" of tokenomics, it is proposed to immediately burn 100 million tokens from the treasury (about 16% of the circulating supply), equivalent to fees that could have accumulated since the protocol's launch. This could remove tokens worth over $800 million from the market at current prices.
• Fees from the Unichain sequencer (Uniswap's Layer-2 network) will also be directed towards burning UNI. Additionally, a Protocol Fee Discount Auction (PFDA) is introduced – an auction for fee discounts that will "internalize" MEV (maximal extractable value), turning it into additional revenue for the protocol.
• Uniswap Labs and Foundation will merge under unified leadership, and interface fees (for the frontend and wallet) will be eliminated. A portion of the revenue (about 20 million UNI per year starting in 2026) will go towards ecosystem development.

Analysts predict that with the current trading volume (over $5 billion daily), annual fee revenue could reach $450-684 million, a significant portion of which will go towards burning UNI, making the token more scarce and attractive to investors. However, there are risks: reducing LP fees (from 0.3% to 0.25%) may prompt them to migrate to other DEXes like Aerodrome or Curve if trading volumes do not increase. Additionally, regulatory issues, such as the potential recognition of UNI as a security by the SEC, add uncertainty.

The market reaction was immediate: after the announcement, UNI rose from $7.24 to a peak of $10.22, with trading volumes of $787-865 million. Whales, including institutional players like Arthur Hayes from BitMEX, are actively accumulating tokens. In the community on X, discussions are boiling: from enthusiasm about "passive income" and a "deflationary engine" to concerns about centralization. Voting on Snapshot is expected from November 17-24, with potential activation in Q1 2026 if the proposal is approved.

Experts believe that the success of "UNIfication" could make Uniswap the "default DEX for tokenized assets," strengthening DeFi's position overall.