Uniswap Executes Historic 100M UNI Token Burn Post Governance Vote

By: Eliza Bennet

Uniswap has made headlines with the execution of a massive 100 million UNI token burn following a successful governance proposal. This proposal, which called for a fee-burning mechanism, passed with overwhelming support from the Uniswap community, emphasizing the decentralized nature of this popular decentralized finance (DeFi) platform. The burn, which involves removing roughly $596 million worth of UNI tokens from the protocol’s treasury, marks a significant development in the DeFi sector.

On December 28, onchain data confirmed the execution of the burn transaction at approximately 4:30 am UTC, marking it as one of the most substantial burns ever carried out by a DeFi protocol. This decision, coined "UNIfication," saw extraordinary backing, with more than 125 million UNI tokens voted in favor and just 742 against, signifying near-unanimous consensus among token holders. The successful passing of the fee switch proposal highlights the community's belief in Uniswap's governance model and its future direction.

This reduction in token supply is anticipated to have several potential impacts. By decreasing the overall supply of UNI tokens, it may influence the token's value dynamics on the market, potentially increasing scarcity and investor interest. The move also underscores Uniswap’s commitment to innovative governance and protocol enhancements, providing a noteworthy case study in the growing influence of decentralized organizations.

Parallelly, 2025 saw significant shifts in the crypto ETF landscape, especially with Bitcoin and Ethereum making notable strides. The introduction and approval of new ETF products by the SEC opened various opportunities for crypto assets on Wall Street, marking a year of expansion for the crypto ETF market. This regulatory move aims to integrate more crypto assets like XRP into mainstream financial products, increasing accessibility and appeal to institutional investors.