Headline: Uniswap burns 100M UNI (~$591M) after 99.9% community vote — deflationary policy sparks price and on‑chain activity
Uniswap’s community has put real weight behind a major economic overhaul: the protocol burned 100 million UNI—about $591 million—after overwhelmingly approving the UNIfication proposal. The vote passed with 99.9% support (more than 125 million UNI cast in favor versus just 742 against), committing future protocol fees to ongoing token burns and pivoting Uniswap toward a deflationary model.
What changed
- The UNIfication proposal formalizes fee-burning mechanics: going forward, protocol fees captured by Uniswap will be used to retire UNI tokens.
- The team also set fees to zero on Uniswap’s web app, wallet, and browser extension while activating revenue streams from V2 pools, selected V3 pools, and Unichain sequencer proceeds. All proceeds from these sources will flow into continuous UNI burns (source: DeFiLlama).
- After the burn, the Uniswap Treasury’s UNI holdings fell from roughly $2.1 billion to about $1.6 billion, creating a tighter supply base that, combined with growing protocol usage, can form a deflationary loop.
Market reaction
- UNI spiked to a local high of $6.40 following the burn, then pulled back slightly. At press time UNI was trading around $6.30, up roughly 5.2% on the day.
- Trading volume jumped 52% to about $297 million, and market capitalization touched a monthly high near $4.6 billion (source: TradingView).
On‑chain and technical signals
- Accumulation volume climbed to roughly 744.6k UNI, crossing above the smoothed 500k average and signaling stronger buy-side participation—buyers displaced sellers according to the Accumulation/Distribution metric.
- The Buyers v Sellers index posted a positive Netflow of 0.116, consistent with increased demand.
- Technical indicators showed short-term strength: UNI reclaimed its 50- and 20-period moving averages and the Stochastic Momentum Index registered a bullish crossover, rising to 37 out of oversold territory.
Outlook
- If buying pressure continues, UNI could retest and clear recent resistance at $6.40, target $6.60 and potentially move toward $7.20.
- Conversely, if demand wanes, a pullback to around $5.70 is possible.
Why this matters
Token burns and fee buybacks are becoming more common across DeFi and crypto projects because they can absorb selling pressure, reduce circulating supply, and support price stability when paired with real protocol revenue. Uniswap’s move formalizes revenue-to-burn mechanics and immediately removed a large chunk of UNI from the treasury—an event that has already influenced price action and on-chain activity.
Sources: DeFiLlama, TradingView
Disclaimer: This article is for informational purposes only and is not investment advice. Cryptocurrency trading involves significant risk; do your own research before making any financial decisions.
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