Uniswap Burns 100M UNI Tokens Worth $596M, Launches Deflationary Model

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Uniswap announced a major protocol update on December 28, 2025, burning 100 million UNI tokens valued at $596 million. The move followed a governance vote with 99.9% approval for the 'UNIfication' proposal. This on-chain news marks a shift to a deflationary model, including token burns and fee redistribution. Protocol fees are now active on Uniswap v2 and some v3 pools, while interface fees dropped to zero. The Uniswap Foundation also set aside 20 million UNI in a Growth Budget for developers and ecosystem projects.

Derived from Cointribune, on December 28, 2025, Uniswap executed the destruction of 100 million UNI tokens, valued at approximately $596 million. The move followed the overwhelming approval of the 'UNIfication' governance proposal, which passed with 99.9% support. The initiative marks a strategic shift toward a deflationary model, featuring a sustainable token burn mechanism and fee redistribution. Protocol fees have been activated on Uniswap v2 and select v3 pools, while interface fees were reduced to zero. Additionally, the Uniswap Foundation announced a 20 million UNI Growth Budget to fund developers and ecosystem projects.

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