#uniswap Burns 100 Million $UNI in One of DeFi’s Largest Supply Cuts
Uniswap has executed a massive supply reduction of its native token, permanently burning 100 million UNI from its treasury in a single transaction. At current prices, the destroyed tokens are worth nearly $600 million.
This move marks a major shift in UNI’s token economics, transitioning it toward a deflationary model directly tied to protocol usage. Following the activation of protocol fees, excess revenue is now directed toward burning UNI, creating scarcity by linking token supply to trading activity on the platform.
The circulating supply of UNI now stands at approximately 730 million, significantly below the original fixed supply cap. This supply shock has drawn renewed market attention, with UNI seeing increased trading volume and price movement following the burn.
The decision was approved through governance with overwhelming consensus, reflecting broad stakeholder alignment on prioritizing capital efficiency and value return to tokenholders.
Despite the large burn, Uniswap’s development remains funded, with a separate allocation of 20 million UNI reserved for ecosystem builders and infrastructure growth.
This strategic burn may set a precedent for other major DeFi protocols, highlighting a growing expectation for clear value accrual mechanisms back to tokenholders in mature decentralized ecosystems.
