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Uniswap, the leading decentralized exchange, announced a pivotal governance proposal on November 10 known as “UNIfication.” The initiative, led by founder Hayden Adams in collaboration with Uniswap Labs and the Uniswap Foundation, aims to transform its ecosystem significantly.
The announcement includes a plan to burn UNI tokens and the introduction of protocol fees, both aimed at aligning incentives and enhancing Uniswap’s position in the global market.
Adams shared the “UNIfication” proposal on X, highlighting how the plan aims to stabilize Uniswap in the market. It includes burning 100 million UNI tokens from the protocol’s treasury and implementing transaction fees for the first time since 2020. These fees will support the token burn and generate additional funds for the upcoming Unichain network.
The proposal also includes new features, such as Protocol Fee Discount Auctions. These auctions will boost returns for liquidity providers and encourage more participation. Additionally, Uniswap v4 will introduce aggregator hooks, enabling it to function as an on-chain aggregator. This will help Uniswap earn more by capturing income from external liquidity sources.
Uniswap Labs also announced that it will stop collecting fees from its interface, wallet, and API. Instead, it will focus on growing the protocol with a new annual growth fund of 20 million UNI, starting in 2026. This change aims to ease the financial pressure from legal issues that have cost millions over the past five years and have limited Uniswap Labs’ involvement in governance.
The development was timely as it coincided with recent regulatory clarity in the U.S, which the Uniswap Foundation says prepares it for the next phase. Community reactions have been overwhelmingly positive, generating excitement among UNI holders and supporters.
Social media is filled with celebration posts and analyses supporting the initiative. However, some community members are still cautiously optimistic about the long-term effects of this change in governance. Meanwhile, following the announcement, the price of UNI rose to $6.45, representing a 7.24% increase for the day and a more than 30% growth since the announcement was made.
Uniswap’s UNIfication proposal aims to speed up the growth of decentralized finance (DeFi) in the next decade. It brings together all stakeholders in a sustainable model. As Uniswap’s liquidity moves to the new v4 version on Unichain, the upcoming burning of liquidity provider positions is a targeted strategy for future growth.
The post Uniswap to Burn 100M UNI and Turn on Fee Switch in Landmark Move appeared first on CoinTab News.
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