Uniswap Burns UNI Tokens
Uniswap has removed 100 million UNI tokens from circulation following an almost unanimous community vote, significantly reducing the token’s total supply.
The protocol carried out a major UNI token burn after receiving overwhelming support from its community. A total of 100 million tokens, previously held in the protocol’s treasury, were permanently removed from circulation. At current market prices, the burned tokens were worth approximately $596 million.
The transaction took place on December 28 at around 4:30 a.m. UTC. Blockchain data confirms that this was the first large-scale action resulting from the newly approved fee mechanism. The burn permanently reduced the total supply of UNI and ranks among the largest token burns in the decentralized finance sector.
The decision was part of a proposal known as UNIfication, which received support from 99.9% of voters. More than 125 million UNI tokens were cast in favor of the changes, while only 742 votes were recorded against them. Such an overwhelming result highlights the strong consensus among token holders.
Following the implementation of the proposal, interface fees were set to zero. At the same time, fees were activated on the older version of the protocol and on selected pools of the newer version operating on the Ethereum mainnet. In the future, a portion of the fees generated by Unichain is expected to be used for additional UNI burns after covering technical operating costs.
After the burn was announced, the price of UNI rose by more than 7% within 24 hours. Trading volume and market capitalization also increased. Currently, approximately 730 million UNI tokens are in circulation, out of a maximum supply of 1 billion.
Alongside the burn, Uniswap also announced continued support for ecosystem development. The Uniswap Foundation plans to allocate 20 million UNI tokens to fund projects and tools aimed at further improving the protocol.
