The multi-year saga has finally reached a resolution, with the Uniswap DAO voting to funnel a portion of protocol fees to buyback and burn UNI.
After years of back and forth, Uniswap’s elusive fee switch is finally being flipped with the Uniswap DAO overwhelmingly passing the “UNIfication” proposal on Christmas day.
Uniswap founder Hayden Adams took to X to celebrate the passing, writing in a post yesterday afternoon, “Unified, true to the name. After a ~2day vote timelock, 100m UNI will be burned, fee switches will be flipped, labs will turn off frontend fees and focus on the protocol, and more. Merry Christmas everyone”
Uniswap is the fifth largest fee generator in all of DeFi, with more than $1 billion in fees accrued over the last year, only trailing Jupiter, Meteora, Circle, and Tether. As is, a portion of swap fees go to liquidity providers.
The so-called fee switch will see the largest decentralized exchange allocate protocol fee revenue to a UNI token buyback and burn mechanism, among other initiatives, aiming to benefit token holders by decreasing circulating supply.
Before UNIfication, earlier discussions around the fee switch included distributing a portion of protocol fees directly to token holders.
Priced In
Despite the incoming buy pressure, the UNI token is down 2% today, as altcoins continue to fail to have a mind of their own, and remain at the mercy of Bitcoin’s price action.
While token holders haven’t been gifted the instant gratification of a holiday token pump, builders and investors are optimistic about the ecosystem’s direction after Unification. Mike Silagadze, the CEO of EtherFi, commented on the vote in an X post saying, “Revenue and fundamentals meta will be the dominant theme of 2026. Tokens that have sensible value accrual will massively outperform.”
UNI is currently changing hands at $5.82 per token, or a $3.6 billion market capitalization, down 87% from its all-time high of $44.92 and $22 billion market capitalization in May 2021.
