Uniswap Governance Approves UNIfication Proposal with 99.9% Support, Activating Fee Switch
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Dec 26 2025- Governance Transformation: Uniswap governance approved the UNIfication proposal with 99.9% support, with over 125 million UNI tokens voted in favor, marking a significant shift in the protocol's economic design that is expected to enhance long-term sustainability.
- Fee Switch Mechanism: The new proposal redirects a portion of trading fees from liquidity providers to the protocol itself for ongoing UNI token burns, which is anticipated to accelerate the reduction of UNI supply through increased trading volumes, thereby enhancing token scarcity.
- Market Reaction: Following the proposal's approval, the price of UNI surged by 18.9% to $5.92, indicating a positive market response to the new economic model, which may attract more investors to Uniswap's long-term growth potential.
- Governance Consolidation: The proposal also consolidates functions previously handled by the Uniswap Foundation into Uniswap Labs, streamlining development oversight while establishing an annual growth budget to support protocol upgrades, reflecting a broader emphasis on protocol-level value capture in the DeFi space.
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.
