The Uniswap community is voting on “UNIfication,” a governance proposal that would burn 100 million UNI from the treasury and activate Uniswap’s long-discussed fee switch on Ethereum mainnet. The vote is live and scheduled to conclude on December 26, 2025, with changes aimed to take effect before year-end if approved.
What the UNIfication proposal includes
- Immediate burn of 100 million UNI: The proposal authorizes the destruction of 100 million UNI held in the treasury, reducing future supply overhang without removing tokens already in circulation.
- Fee switch activation on Ethereum mainnet: A portion of swap fees from Uniswap v2 and v3 pools would be routed to a smart contract designated for UNI burns.
- Operational alignment: The initiative formalizes closer coordination among Uniswap Labs, the Uniswap Foundation, and on-chain governance. Under the plan, Uniswap Labs would focus on protocol development and growth, and remove fees from its interface, wallet, and API.
- Prospective growth budget: Governance would approve a 20 million UNI annual budget for growth, distributed quarterly via vesting starting in 2026.
How the fee switch would work
At present, all swap fees go to liquidity providers (LPs). Under UNIfication, a share of those fees would be redirected to a burn mechanism:
- Uniswap v2: 0.05 percentage points of fees would be sent to a new “token jar” smart contract.
- Uniswap v3: Between one-quarter and one-sixth of pool fees would be contributed to the same contract.
Funds accumulated in the contract are intended to support ongoing UNI burns tied to protocol usage, introducing a structural link between network activity and token supply reduction.
Governance timeline
Founder Hayden Adams unveiled the final version of the proposal, and the on-chain vote is now live. According to the governance page, voting is scheduled to end at 2:11 a.m. on December 26 (UTC+8). If approved, the initial burn and fee switch activation would begin rolling out before the New Year.
Why it matters
The 100 million UNI burn would materially shrink the treasury’s future supply overhang, while the fee switch could establish a recurring burn mechanism funded by protocol activity. The long-term impact will depend on Uniswap’s trading volumes and market share: if volumes grow, burn rates and deflationary effects could strengthen; if they decline, those effects would diminish.