Uniswap Labs permanently burned 100 million UNI Token , with a total value of up to $600 million, on December 27, 2025.
This move is the blockchain implementation of a governance plan aimed at closely linking the protocol's revenue to the Token's value.
UNI rose 6% after Labs confirmed it switched to a deflationary model.
Uniswap Labs carried out this Token burn as part of a proposal called “UNIfication.” This proposal was introduced in November 2025 and received strong support in a vote on December 25, 2025.
This initiative marks a shift as Uniswap Labs moves away from its previous fee-retention model, moving towards a new approach focused on continuously burning Token to enhance Token long-term value.
With this new structure, protocol fees will be used to buy and burn UNI, driving the UNI Token toward a deflationary model. In Uniswap v2, this mechanism allows LP to receive 0.25% of the fee per transaction, of which 0.05% is allocated to the protocol.
In version v3, LP will Chia either 1/4 or 1/6 of the fees they receive with the protocol, depending on the fee tier they choose.
Supporters of this proposal argue that regular Token burning sessions would reduce the circulating supply of UNI , thereby increasing the Token 's scarcity over time.
In addition, UNIFICATION also restructured several aspects of Uniswap's operational organization.
Part of this plan involves transferring all Uniswap Foundation staff to Uniswap Labs, and using Capital from the Treasury 's development budget to support this.
Uniswap Labs stated that this change aims to consolidate development and operational resources, thereby supporting the protocol's expansion.
The unit also stated that in the future, there may be further proposals to build new revenue mechanisms through a separate governance process. Some potential fee sources mentioned include protocol fees on layer-2 networks, Uniswap v4 , UniswapX, PFDA, and aggregator hook functions.
According to BeInCrypto data, the market reacted positively to the recent event. The price of UNI increased by more than 6% in the last 24 hours , reaching a multi-week high of $6.38 at the time of writing.
Uniswap currently leads the decentralized volume and operates on over 40 different blockchain networks. According to data from defillama, Uniswap processed over $60 billion in volume last month.
