Developers Delivered on Their Promise for This Altcoin: A Massive Token Burn Worth $596 Million Was Conducted – Price Reaction Followed

According to onchain cryptocurrency data, Uniswap’s treasury burned approximately 100 million $UNI tokens today.

This transaction, worth approximately $596 million, was carried out under the recently approved Uniswap fee-burning proposal. The new regulation stipulates that future transaction fees collected on the Uniswap protocol will also be used for $UNI token burning.

The burning in question came after the UNification proposal was accepted by Uniswap management. The proposal was approved with 99.9% support in the vote. Over 125 million $UNI were voted in favor, while only 742 $UNI voted against.

Uniswap founder Hayden Adams confirmed the voting result on the X platform. Adams added that the proposal was jointly submitted by Uniswap Labs and the Uniswap Foundation in November and that it activates the protocol’s long-awaited fee switch mechanism.

Under the new mechanism, a portion of transaction fees, previously channeled entirely to liquidity providers, will now be transferred to the protocol and used for $UNI burning. Additionally, net sequencer revenue on Unichain will also be included in the burning system. This will create a continuous deflationary cycle aimed at reducing the $UNI supply as protocol usage increases.

Following this development, the price of $UNI rose by approximately 7% today.

A graph showing the increase in $UNI price.

*This is not investment advice.