Uniswap has conducted a significant token burn following the approval of its long-awaited fee destruction proposal, removing 100 million UNI, price about $596 million at current prices, from the protocol's coffers.
Onchain data shows that the burn transaction was accomplished around 4:30 a.m. UTC on December 28, confirming the primary large-scale implementation of the governance decision made earlier this week, based on analyst EmberCN. The transaction permanently reduced Uniswap's (UNI) token supply, marking one in every of the most important burns ever attributable to a decentralized finance protocol.
The Uniswap protocol’s highly anticipated fee transition, dubbed “UNIfication,” passed with 99.9% approval on Thursday. More than 125 million UNI tokens voted in favor of the proposal, in comparison with just 742 tokens that voted against it, highlighting the broad consensus amongst token holders.
Several crypto heavyweights with significant voting power supported the UNIfication proposal, including Jesse Waldren, founder and managing partner of crypto-focused enterprise capital firm Variant; Kain Warwick, the founding father of decentralized finance protocols Infinex and Synthetix; and Ian Lapham, who previously worked as an engineer at Uniswap Labs.
Uniswap Labs confirms 100 million burn
Uniswap Labs confirmed the execution in a post on X, stating that “UNIfication has officially launched on-chain.”
Uniswap Labs confirms the destruction of the token. Source: Uniswap Labs
As a 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 collection of v3 pools on the Ethereum mainnet. The fees generated by Unichain are also expected to enter the UNI burns after covering the prices of Optimism and Layer 1 data.
According to data from CoinMarketCap, UNI rose greater than 5% within the last 24 hours after the fireplace, with each trading volume and market capitalization increasing. The token's circulating supply currently stands at around 730 million UNI, with a complete supply of 1 billion.
Uniswap Foundation commits 20 million UNI for growth
When the proposal was unveiled, the Uniswap Foundation said it might proceed to fund developers and wouldn’t stop grant programs to support protocol development. The foundation said supporting developers stays a top priority.
To support this plan, the Uniswap Foundation intends to create a growth budget that may distribute 20 million UNI tokens to fund development and expansion across the Uniswap ecosystem.
