Uniswap (UNI) conducted a significant token burn after a long-awaited fee-burning proposal, which resulted in 100 million UNI being removed from the treasury, representing a value of approximately $596 million at today’s price.
According to on-chain data, the burn happened at approximately 4:30 a.m. UTC on Dec. 28 and marks the first significant implementation of this week’s governance vote, according to crypto analyst EmberCN. This burn reduces the circulating supply of UNI held by the Uniswap treasury and is considered the largest burn by a DeFi project to date.
The proposal, called UNIfication fee switch, has successfully passed on Thursday with an overwhelming approval score of 99.9 percent. More than 125 million UNI tokens were in support, while only 742 were opposed.
Some people who supported the proposed solution include Jesse Waldren, the founder of venture firm Variant; Kain Warwick, the founder of Synthetix and Infinex; and Ian Lapham, the former engineer at UNI Labs.
Uniswap Labs Confirms Execution
The Uniswap Labs has confirmed the burn on X (Twitter), that “UNIfication has officially been executed on-chain.”
Pursuant to the update, the interface fees applied by Uniswap Labs are set to 0, while fees are now in effect on UNI v2 and specific v3 pools on the Ethereum chain. Fees accrued by Unichain will also be utilized to burn UNI. This will be after covering the Optimism and Layer-1 data fees.
After the burn, UNI prices were up more than 5% within 24 hours based on rising trading volumes and market caps. The circulating supply is 730 million UNI tokens, against a total supply of 1 billion.
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Uniswap Foundation Focuses on Growth
In this regard, the Uniswap Foundation stated that grant programs supporting the protocol will continue. To encourage further growth, the UNI Foundation intends to set up a “Growth Budget” wherein it will allocate 20 million UNI tokens.
This is an important sign for Uniswap’s dedication to the management of the value of its token, as well as the development of the ecosystem. It is definitely a cause for optimism.
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