The UNI token surged nearly 38% after the Uniswap Foundation and Uniswap Labs introduced a sweeping governance proposal, “UNIfication,” aimed at strengthening the token’s value through new fee and burn mechanisms.
The proposal includes activating protocol-level fees to buy and burn UNI tokens and implementing a discount auction system to increase liquidity provider rewards. It also plans to permanently burn 100 million UNI about 16% of the circulating supply from the project’s treasury. Fees generated on Unichain, Uniswap’s Ethereum layer 2 network, will feed into the same burn mechanism.
Following the announcement, UNI’s market capitalization exceeded $6 billion, lifting it to the 34th-largest cryptocurrency. The Uniswap Foundation said the move marks “the next era” for the protocol, designed to improve long-term incentives for tokenholders and developers while reinforcing Uniswap’s position as the leading decentralized exchange.