Uniswap community approves UNIfication with 99.9% support, activating the fee switch, removing frontend fees, and burning 100M UNI.
Author: Chirag Sharma
December 25, 2025 – The Uniswap community has decisively approved the long-awaited UNIfication proposal, marking a major shift in the protocol’s fee structure and token economics. The governance vote closed with nearly 99.9% support, representing roughly 125 million UNI tokens. As a result, Uniswap now moves toward a more sustainable and explicitly deflationary economic model.
The proposal activates several structural changes at once. Most notably, it turns on the fee switch, removes frontend fees, and initiates a 100 million UNI token burn. Together, these updates reshape how value flows through the Uniswap ecosystem.
The scale of approval stood out even by Uniswap’s historical standards. Nearly all participating voters supported the proposal, reflecting strong alignment across liquidity providers, developers, and long-term UNI holders.
Leading up to the vote, discussions focused on efficiency, competitiveness, and long-term sustainability. Many contributors argued that Uniswap needed clearer value capture to remain dominant as DeFi matured.
As a result, the outcome signals more than a technical upgrade. It shows that Uniswap’s governance has evolved into a decision-making body capable of executing complex economic changes with broad consensus.
HEΔTT
@0xHeatt
@haydenzadams Time to share and adapt to the market. You ate well till this day cousin.
Voting has concluded on Unification 🦄 125,342,017 YES 742 NO Unified, true to the name After a ~2day vote timelock, 100m UNI will be burned, fee switches will be flipped, labs will turn off frontend fees and focus on the protocol, and more Merry Christmas everyone 🎄 https://t.co/P0rJmLN9Cc https://t.co/wpsEC8udlW
04:01 PM·Dec 26, 2025
DylanΞGra₿owski
@GrabowskiDylan
@haydenzadams THIS is what DAO governance looks like
Voting has concluded on Unification 🦄 125,342,017 YES 742 NO Unified, true to the name After a ~2day vote timelock, 100m UNI will be burned, fee switches will be flipped, labs will turn off frontend fees and focus on the protocol, and more Merry Christmas everyone 🎄 https://t.co/P0rJmLN9Cc https://t.co/wpsEC8udlW
05:05 AM·Dec 26, 2025
Alex RT₿
@rutradebtc
@haydenzadams Who’s buying UNI before the fireworks start?
Voting has concluded on Unification 🦄 125,342,017 YES 742 NO Unified, true to the name After a ~2day vote timelock, 100m UNI will be burned, fee switches will be flipped, labs will turn off frontend fees and focus on the protocol, and more Merry Christmas everyone 🎄 https://t.co/P0rJmLN9Cc https://t.co/wpsEC8udlW
08:56 PM·Dec 25, 2025
At the center of UNIfication sits the activation of the Uniswap fee switch. This mechanism allows the protocol to redirect a portion of trading fees away from being captured exclusively by liquidity providers.
Under the new model, governance can route fees to the treasury or toward UNI token burns. Importantly, these parameters remain adjustable through future votes.
Previously, UNI functioned primarily as a governance token. Now, the fee switch directly links protocol activity to token value. As a result, Uniswap aligns more closely with centralized exchanges that already monetize trading at the platform level.
Another major component of the proposal is the removal of frontend fees, a move aimed at improving transparency and lowering costs for traders. These fees had drawn criticism for being opaque and inconsistent with DeFi’s open-access ethos.
In parallel, Uniswap will execute a burn of 100 million UNI tokens, roughly 10% of the circulating supply, following a two-day timelock period. The tokens will be removed permanently from circulation, introducing immediate supply-side scarcity.
More importantly, the burn is not a one-off event. Ongoing protocol fees generated through the fee switch can be directed toward continuous UNI burns, establishing a long-term deflationary mechanism tied directly to trading activity.
Following the vote, market participants reassessed UNI’s long-term role. Trading volume increased as investors priced in the new fee capture and burn mechanics.
Notably, this shift mirrors successful models used elsewhere in crypto, where deflation and revenue sharing strengthened token performance over time.
Beyond Uniswap, the vote sets an example for DeFi governance. Many protocols still struggle to balance decentralization with sustainable economics. UNIfication shows that community-led systems can evolve without sacrificing openness.
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