The highly anticipated Uniswap fee switch proposal 'UNIfication' is about to pass and is expected to officially launch later this week. The proposal has met the threshold of 40 million votes, triggering one of the most significant upgrades in Uniswap's seven-year history.
Minimum threshold for the UNIfication proposal passed
Since voting opened on December 20, the number of votes supporting UNIfication has reached 69 million, and voting will close on December 26.
Uniswap Labs CEO Hayden Adams stated last Thursday that if the vote passes smoothly, it will enter a two-day timelock period, after which the fee switches for Uniswap v2 and v3 will be activated on the Unichain mainnet, triggering the UNI token burn mechanism.
Just submitted the Unification proposal for final governance vote Voting starts on 12/19 at 10.30pm EST and ends on 12/25 If it passes, after a 2 day timelock period: 100m UNI will be burned v2 + v3 fee switches will flip on mainnet and begin burning UNI, along with…
— Hayden Adams (@haydenzadams) December 18, 2025
According to the proposal, the Uniswap Foundation will burn 100 million UNI tokens from its reserves; at the same time, it will implement a system called 'Protocol Fee Discount Auction' to enhance the returns for liquidity providers (LPs).
The market generally believes that this reform will significantly improve the supply-demand structure of UNI tokens and enhance its appeal as a long-term holding asset. Since the UNIfication voting began, the price of UNI has risen by about 25%, currently trading at approximately $6.08, successfully breaking free from a month-long slump caused by the overall market pullback, during which UNI once dropped to $4.88, setting a new seven-month low.
Uniswap, as the world's largest decentralized trading platform, has processed over $4 trillion in trading volume since its launch in November 2018.
Several crypto heavyweights support the UNIfication proposal
Several prominent figures in the crypto industry with significant voting power have expressed support for the UNIfication proposal, including Jesse Waldren, founder and managing partner of the crypto venture capital firm Variant, Kain Warwick, founder of the decentralized finance protocols Infinex and Synthetix, and former Uniswap Labs engineer Ian Lapham. So far, only 742 votes (about 0.001%) oppose the proposal, while approximately 1.5 million votes have chosen to abstain.
Uniswap will continue to prioritize protocol development
When the proposal was put forward, the Uniswap Foundation also assured developers that it would not cancel the subsidies for protocol development and ecosystem growth, emphasizing that supporting builders will remain a core priority.
To this end, the Uniswap Foundation plans to establish a 'growth budget', which is expected to allocate 20 million UNI tokens for the ongoing promotion of protocol development and ecosystem expansion.
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