Uniswap Burns 100M UNI and Launches Ongoing Protocol Burn

• Uniswap executed a 100M UNI burn as part of its new governance plan.
• The protocol now activates a continuous burn model using future collected fees.

Uniswap officially burned 100 million UNI tokens, worth approximately $596 million, through an on-chain transaction that immediately sent the tokens to a permanent burn address. This action wasn’t just talk, as the burn actually took place and immediately reduced the existing token supply.

The action came after UNI holders voted in favor of the UNIfication proposal, making the large-scale burn a clear continuation of what the governance process had already set in motion.

Uniswap Moves Toward a Continuous Burn Era

The proposal also cleared the path for a fee switch, allowing the protocol to gather part of the transaction fees and use them to buy and burn UNI on a recurring basis, turning the burn into an ongoing cycle. Burning 100 million UNI also means a reduction of about 16% of the total supply, a deflationary measure believed to open up opportunities for long-term value appreciation due to increasingly limited supply. It also ranks among the biggest burns in the DeFi world.

This approach also paints Uniswap as more assertive in shaping a slimmer token structure. Market watchers have been paying close attention, since gradual supply cuts tend to spark plenty of debate.

Last week, we highlighted how the UNIfication proposal garnered over 69 million votes from UNI holders, with only around 700 votes against it ahead of the December 25 deadline. The proposal does lead to a fee model change, where the protocol will begin collecting fees previously held by liquidity providers and then using them to buy and burn UNI, becoming the basis for the recent token burn action.

Earlier in December, we also reported on Uniswap’s integration with Revolut, simplifying fiat-to-crypto access directly from its web app and mobile wallet, allowing users to access DeFi more easily. Further back, on October 17, we covered Uniswap’s move to expand beyond the EVM network by integrating Solana trading through Jupiter, as part of its move towards broader cross-chain capabilities.

As of the writing time, UNI is trading at about $6.16, up 3.31% over the last 24 hours, with $255.27 million in trading volume and $4.61 billion in market cap.