TLDR

  • Uniswap burned 100 million UNI tokens—valued at $596 million—following a successful governance vote.
  • Uniswap’s major burn cut the UNI token supply to 730 million.
  • Uniswap’s fee switch proposal received nearly 99.9% support from stakeholders and passed.
  • The Uniswap Foundation allocated 20 million UNI tokens for ecosystem growth.

On December 28, 2025, Uniswap carried out a major token burn, permanently removing 100 million UNI tokens from circulation—worth approximately $596 million. This action came after the approval of the “UNIfication” fee switch proposal, which had overwhelming backing from Uniswap’s governance community. Implementing this decision marks a significant event in the protocol’s history, as it directly affects the circulating supply of UNI tokens.

The proposal—backed by nearly 99.9% of UNI token holders—activated fees for Uniswap’s v2 and select v3 pools on the Ethereum mainnet. Additionally, Uniswap Labs eliminated interface fees, a step aimed at reducing costs for users. After covering operational expenses, fees from Unichain will go toward future UNI burns.

Uniswap’s Successful Fee Switch Proposal

The “UNIfication” proposal earned broad support from the Uniswap community and was approved. Over 125 million tokens were voted in favor, while just 742 opposed it. This consensus showed that major ecosystem stakeholders were aligned. Crypto industry leaders like Variant’s Jesse Waldren and Synthetix’s Kain Warwick backed the proposal, helping it pass.

Uniswap Labs verified both the token burn and the activation of the fee switch, marking the first large-scale rollout of the governance decision. Removing 100 million UNI tokens permanently cut the circulating supply to roughly 730 million UNI, out of a total supply of 1 billion.

Impact of UNI Burn on Token Value

After the burn, UNI’s price rose by more than 5%. This increase reflects positive market sentiment about the successful burn and fee switch implementation. CoinMarketCap data showed that market capitalization and trading volume also spiked in the 24 hours post-burn. The reduced supply is likely viewed as a deflationary measure, which could help long-term UNI holders by boosting the token’s scarcity.

The burn also fits with Uniswap’s ongoing strategy to enhance the token’s value by shrinking its total supply. By taking 100 million UNI tokens out of circulation, Uniswap hopes to increase UNI’s scarcity—a move that could have a long-term effect on its market performance.

Uniswap Foundation’s Growth Budget

Alongside the UNI burn, the Uniswap Foundation revealed plans to set aside 20 million UNI tokens for a new Growth Budget. This budget will fund further development and expansion within the ecosystem. Allocating these tokens highlights the foundation’s dedication to growing the ecosystem while still prioritizing support for developers.

The Uniswap Foundation repeated that it’s continuing to support protocol development and ensure the ecosystem keeps growing and innovating. This step mirrors the foundation’s strategy to solidify its place in the decentralized finance sector.