Uniswap Conducts Major Token Burn Following Fee Destruction Proposal Approval
Uniswap, a leading decentralized finance (DeFi) protocol, has executed a significant token burn, removing 100 million UNI tokens, valued at approximately $596 million at current prices, from its treasury. This move follows the approval of the long-awaited fee destruction proposal, which aims to transition the protocol’s fee structure. According to on-chain data, the token burn transaction was completed on December 28, marking one of the largest token burns in DeFi history.
The Uniswap protocol’s highly anticipated “UNIfication” proposal, which includes the fee transition, was approved with an overwhelming 99.9% of votes in favor, with over 125 million UNI tokens voting in support and only 742 tokens opposing it. The broad consensus among token holders reflects the confidence in the protocol’s new direction. Several prominent figures in the crypto space, including Jesse Walden, Kain Warwick, and Ian Lapham, supported the proposal, demonstrating the backing of key stakeholders.
Uniswap Labs Confirms Token Burn and Fee Update
Uniswap Labs confirmed the execution of the token burn and the update to the fee structure in a post on X, stating that “UNIfication has officially launched on-chain.” As part of the update, interface fees charged by Uniswap Labs have been set to zero, while fees have been enabled for Uniswap v2 and a selection of v3 pools on the Ethereum mainnet. The fees generated by Unichain will also be allocated to UNI burns after covering the costs of Optimism and Layer 1 data.
Uniswap Labs confirms the destruction of the token. Source: Uniswap Labs
Market Reaction and Uniswap Foundation’s Commitment to Growth
The token burn and fee update have had a positive impact on the UNI token price, which rose over 5% in the last 24 hours, according to data from CoinMarketCap. The token’s circulating supply currently stands at around 730 million UNI, with a total supply of 1 billion. The Uniswap Foundation has committed to supporting developers and has allocated 20 million UNI tokens to fund development and expansion across the Uniswap ecosystem, demonstrating its dedication to the protocol’s growth and development.
For more information on this development, visit https://cointelegraph.com/news/uniswap-executes-100m-uni-burn-after-fee-switch-approval?utm_source=rss_feed&utm_medium=rss_tag_altcoin&utm_campaign=rss_partner_inbound
