Uniswap has officially carried out one of the largest token burns in decentralized finance history, removing 100 million UNI tokens from circulation after its long-awaited governance proposal received overwhelming community support. The burn, valued at approximately $596 million based on current market prices, significantly reduces the total UNI supply and marks a major shift in the protocol’s economic model.
On-chain data confirms the burn transaction was executed around 4:30 a.m. UTC on December 28. This action represents the first major implementation of the governance decision approved earlier in the week and permanently lowers UNI’s circulating supply.
Uniswap Governance Approves “UNIfication” With Near-Unanimous Support
The proposal, known as UNIfication, passed with an extraordinary 99.9% approval rate. More than 125 million UNI tokens were voted in favor, while only 742 tokens opposed the measure. This level of consensus highlights strong confidence among token holders in Uniswap’s long-term strategy.
Several influential figures in the crypto space supported the proposal, including Variant founder Jesse Waldren, Synthetix and Infinex founder Kain Warwick, and former Uniswap Labs engineer Ian Lapham. Following the vote, Uniswap Labs confirmed on X that the proposal had been “officially executed onchain.”
As part of the update, Uniswap Labs set interface fees to zero, while protocol fees were activated on Uniswap v2 and select v3 pools on Ethereum mainnet. In addition, fees generated by Unichain will contribute to future UNI burns after covering Optimism and Layer-1 data costs.
UNI Price Reaction and Future Ecosystem Funding Plans
Following the burn, UNI’s price climbed more than 5% within 24 hours, alongside increases in trading volume and market capitalization. According to market data, UNI’s circulating supply now sits at approximately 730 million tokens, out of a maximum supply of 1 billion.
Despite the large-scale burn, the Uniswap Foundation emphasized that developer support remains a top priority. Grant programs for builders will continue, ensuring ongoing innovation and protocol growth. To reinforce this commitment, the foundation plans to establish a dedicated Growth Budget, allocating 20 million UNI tokens to fund development and expansion across the Uniswap ecosystem.
This milestone burn not only reshapes UNI’s tokenomics but also signals Uniswap’s intent to balance value accrual for token holders with sustained ecosystem development.
