Uniswap Labs and Uniswap Foundation’s “UNification” proposal to activate protocol fees for the largest decentralized cryptocurrency exchange and burn millions of UNI received overwhelming support from voters, transforming the token from a purely governance mechanism to a value accumulation asset.
The proposal received more than 125 million votes in favor during the five days of voting, with only 742 votes against.
Uniswap sees an average of around $2 billion per day in trading volume and generates $600 million annualized in fees, according to data from DeFillama. So far, it has diverted all fees to liquidity providers, leaving UNI as a governance-only token with no direct economic link to platform activity.
Some of those fees will now be sent to an on-chain mechanism designed to burn the tokens, directly linking use of the protocol to reducing the supply of tokens and potentially increasing the market price. 100 million UNI from the treasury, worth more than $590 million at the current exchange rate, will also be burned in a retroactive measure intended to reflect fees that could have accrued if protocol fees had been active since Uniswap’s creation in 2018.
The UNI token has gained 2.5% in the last 24 hours to $5.92.
Read more: Uniswap proposes radical ‘UNification’ with UNI Burn and protocol fee overhaul
