Uniswap Burns 100 Million UNI, Reshaping Token Economics
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Dec 28 2025- Token Burn Implementation: Uniswap successfully burned 100 million UNI on December 28, permanently reducing the token supply by approximately $596 million, marking the first large-scale implementation of a governance decision and significantly altering the protocol's token economics.
- Voting Support Strength: The UNIfication proposal received overwhelming support with 99.9% approval, totaling over 125 million UNI votes in favor, reflecting a rare alignment among token holders on this sensitive issue and a shared expectation for capturing protocol value.
- Fee Structure Adjustment: Uniswap Labs set interface fees to zero while activating fees on Uniswap v2 and selected v3 pools on the Ethereum mainnet, ensuring that revenue generated by the protocol directly contributes to token burns, thereby changing the value capture dynamics.
- Commitment to Ongoing Development: The Uniswap Foundation plans to allocate 20 million UNI for ecosystem expansion and developer tooling, demonstrating a commitment to innovation and maintaining competitive advantage despite the reduction in treasury-held tokens through burns.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
