Uniswap Labs completely burned 100 million UNI tokens valued at $600 million on December 27.
The transfer executed the on-chain portion of a governance plan designed to carefully hyperlink the protocol’s income to the token’s worth.
UNI Rallies 6% After Labs Confirms Deflationary Pivot
Uniswap Labs carried out the burn beneath “UNIfication,” a proposal launched in November 2025 and permitted with overwhelming help on Dec. 25, 2025.
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The initiative marks a shift away from the Labs’ prior charge retention mannequin towards a framework constructed round sustained token burns.
UNIfication has formally been executed onchain
✓ Labs interface charges are set to zero
✓ 100M UNI has been burned from the treasury
✓ Charges are on for v2 and a set of v3 swimming pools on mainnet
✓ Unichain charges stream to UNI burn (after OP & L1 knowledge prices)
Let the burn start pic.twitter.com/fcr3WY3gPc
— Uniswap Labs 🦄 (@Uniswap) December 27, 2025
Underneath the brand new construction, protocol charges are used to purchase and burn UNI, transferring the asset towards a deflationary setup. In Uniswap v2, the mechanism permits liquidity suppliers to earn 0.25% per commerce, with 0.05% allotted to the protocol.
On v3, liquidity suppliers will route both one-fourth or one-sixth of their charges to the protocol, relying on the charge tier.
Supporters of the proposal argue that repeated burns might regularly scale back UNI’s circulating provide, which they are saying might improve shortage over time.
Past token mechanics, UNIfication additionally restructures components of Uniswap’s organizational setup.
As a part of the overhaul, staff of the Uniswap Basis will transition to Uniswap Labs, with funding from the treasury’s progress fund.
Labs framed the transfer as a consolidation of improvement and operational work to help the protocol’s enlargement.
The agency additionally signaled that additional income mechanisms may very well be proposed later via separate governance processes. Potential future charge sources cited embrace protocol charges on layer-2 networks, Uniswap v4, UniswapX, PFDA, and aggregator hooks.
The market response to the execution was optimistic, in line with BeInCrypto knowledge. UNI rose greater than 6% over the previous day to a multi-week excessive of $6.38 as of press time.
Uniswap leads decentralized alternate buying and selling within the crypto business and operates throughout 40 blockchain networks. DefiLlama knowledge present Uniswap processed greater than $60 billion in buying and selling quantity over the previous month.
