Uniswap Burns $596M UNI as Fee Switch Activates
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Dec 28 2025- Supply Reduction: Uniswap executed a governance decision to burn 100 million UNI, valued at approximately $596 million, significantly reducing circulating supply and enhancing market activity, which boosts investor confidence.
- Fee Mechanism Activation: The newly activated protocol fees will directly contribute to the UNI burn mechanism, enabling each qualifying transaction to facilitate supply reduction, thereby closely linking Uniswap's growth to UNI scarcity.
- Governance Support: Over 125 million UNI voted in favor of the proposal, achieving a 99.9% approval rate, demonstrating strong consensus among token holders regarding the protocol's direction, which reinforces market trust in Uniswap.
- Ecosystem Investment: The Uniswap Foundation committed 20 million UNI for ecosystem growth initiatives, ensuring that developer funding remains a core priority despite changes in fee distribution, thereby supporting innovation and infrastructure expansion.
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.
