After many years of being just on paper, the Uniswap community has strongly voted in favor of the UNIfication proposal, paving the way for the activation of the fee switch. The governance vote far exceeded the quorum threshold of 40M UNI, with an overwhelming majority, indicating a high consensus on changing the operational model of the protocol.
According to the proposal, Uniswap will enable the fee switch on V2 and V3, taking about 0.05% of transaction fees as protocol fees instead of all going to LPs. This fee will be used to buy back and burn UNI, for the first time directly linking trading activity to token value. Notably, Uniswap will immediately burn 100M UNI when the mechanism is activated, considering the “historical” fees that have never been collected before.
In addition, the sequencer fees of Unichain will also be incorporated into the burn mechanism, showing the intention to link layer-2 with the value flow of UNI. UNIfication marks an important transition: Uniswap is no longer just pure governance DeFi, but is beginning to operate according to the logic of real cash flow. $UNI
