The “UNIfication” proposal from Uniswap Labs and the Uniswap Foundation to enable protocol fees for the largest decentralized crypto exchange and burn millions of UNI received massive support from voters, transforming the token from a purely governance mechanism into a value-generating asset.
The proposal received more than 125 million votes in favor over the five days of voting, with only 742 votes dissenting.
Uniswap averages about $2 billion in trading volume per day and generates $600 million in annualized fees, according to data from DeFillama. Until now, all fees were passed on to liquidity providers, leaving UNI as a symbol only of governance, with no direct economic link to the platform’s activity.
Some of these fees will now be funneled into an on-chain mechanism designed to burn the tokens, directly linking protocol usage to reducing the token supply and potentially increasing the market price. A total of 100 million Treasury UNI – worth more than $590 million at current rates – will also be burned as part of a retroactive measure intended to reflect fees that might have accrued had protocol fees been active since Uniswap’s inception in 2018.
The UNI token gained 2.5% in the last 24 hours to $5.92.
Read more: Uniswap proposes radical ‘unification’ with UNI Burn overhaul and protocol fees
