Uniswap Proposal Activates Protocol Fees to Reduce UNI Supply
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Dec 29 2025- Activation of Protocol Fees: The Uniswap proposal aims to convert nearly $4 trillion in trading volume into long-term value by collecting small protocol fees and burning UNI tokens, thereby enhancing benefits for UNI holders and improving market competitiveness.
- Liquidity Enhancement Tools: The newly introduced Protocol Fee Discount Auction is expected to add between $0.06 and $0.26 per $10,000 traded for liquidity providers, thereby improving returns and increasing attractiveness in a low-margin business.
- Organizational Restructuring: Many roles currently held by the Uniswap Foundation will shift to Uniswap Labs, which will set interface, wallet, and API fees to zero, focusing on protocol growth and ecosystem expansion with an annual budget of 20 million UNI.
- Market Competition Signal: With DeFi trading volumes rising and institutions building on-chain, the activation of protocol fees signals that Uniswap is ready to compete as infrastructure rather than just software provider.
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.
