Uniswap Burns $596M Like It’s Just Another Tuesday 🦄🔥

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Uniswap, in a move that made crypto bros everywhere spill their artisanal cold brew, recently torched 100 million UNI tokens-roughly $596 million-because apparently that’s just how they roll now. 💸🔥

  • Uniswap burned 100M UNI after a governance vote passed with 99.9% approval-because democracy is alive and well, unless you’re one of those 742 dissenters who probably still use centralized exchanges.
  • Protocol fees are now live, while interface fees remain zero-because nothing says “decentralization” like giving away freebies while quietly charging elsewhere.
  • UNI jumped 19% during voting and then another 6% post-burn, proving once again that markets love a good arson story.

The burn followed what can only be described as a “landslide” approval-99.9% in favor-because nothing unites people like setting money on fire. 🔥 The proposal, aptly named “UNIfication,” passed on December 25, making it the weirdest Christmas gift since Aunt Carol’s homemade fruitcake.

UNI (UNI) rallied 6% in 24 hours, bouncing between $5.89 and $6.35 like a crypto trader after their third espresso. The token had already surged 19% when voting began on December 19-20, because nothing gets institutional investors excited like the prospect of fewer tokens floating around.

Uniswap Labs, in a statement that sounded suspiciously like a corporate PR email, announced that interface fees are now zero while protocol fees are “activated”-which is just a fancy way of saying, “Don’t worry, we’ll find other ways to take your money.”

Uniswap Governance Vote Achieves Near-Unanimous Approval (Because Who Needs Dissent?)

The proposal received 125,342,017 UNI votes in favor versus a measly 742 against-basically the crypto equivalent of a participation trophy for the opposition. It blew past the 40 million UNI quorum requirement, proving that when Uniswap says “jump,” token holders ask, “How high?”

UNIfication has officially been executed onchain

✓ Labs interface fees are set to zero (free is always nice, right?)

✓ 100M UNI has been burned from the treasury (poof, gone!)

✓ Fees are on for v2 and a set of v3 pools on mainnet (surprise!)

✓ Unichain fees flow to UNI burn (after OP & L1 data costs-because even burns have overhead)

Let the burn begin 🔥

– Uniswap Labs 🦄 (@Uniswap) December 27, 2025

The two-day governance timelock before the burn was like watching paint dry, except with more zeros at stake. Voting started at 3:50 UTC on December 19-20, and the price immediately reacted-because nothing says “efficient markets” like knee-jerk reactions to governance proposals.

Uniswap Labs confirmed that interface fees are now zero (hooray!) while 100M UNI has been burned (goodbye, sweet tokens). Protocol fees are live for v2 and select v3 pools, and Unichain fees will now fund more burns-because apparently, one bonfire wasn’t enough.

Future fee sources-Layer 2s, v4, UniswapX, PFDA, and aggregator hooks-will be proposed later, because why solve all your problems at once when you can drag them out over multiple governance votes?

Fee Structures: Because One-Size-Fits-All Is So 2020

Uniswap v2 has a hardcoded fee mechanism where governance flips fees for all pools at once-like turning off the lights in a dormitory.

With fees now active, LP fees drop from 0.3% to 0.25%, with the remaining 0.05% going to the protocol for burns-because nothing incentivizes liquidity providers like taking a little off the top.

Uniswap v3, ever the overachiever, lets governance tweak fees pool by pool-because why have uniformity when you can have chaos? Protocol fees are set at one-quarter of LP fees for low-fee pools and one-sixth for high-fee pools, ensuring that everyone gets a slightly different deal.

The tiered structure is supposed to align incentives, but let’s be real-it mostly just ensures that no one fully understands what they’re paying until it’s too late. 🤷‍♂️

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2025-12-28 17:55