Since 2018, Uniswap has shaped the foundations of DeFi. But 2024 marks a historic turning point. The "UNIfication" vote, led by Hayden Adams, gathered nearly 62 million votes in favor. A massive mobilization that validated the activation of fees in the v2 and v3 versions of the protocol.
Declared objective: to make Uniswap the reference platform for tokenized finance. Labs and the Foundation merge their functions. The interface, the wallet, and the API become free. Revenues will now focus on the growth of the protocol, funded from 2026 with a budget of 20 million UNI.
This change is accompanied by an internal restructuring: teams that until now were independent are joining Labs. This is about consolidating the ecosystem while formalizing the alignment between Uniswap Labs and the DAO. As Hayden Adams summarized on X:
"Uniswap Labs will align with Uniswap's governance through a contractual agreement, recognized as legally binding in the State of Wyoming under its DUNA law."
Uniswap is not limited to activating fees. The protocol triggers the immediate burning of 100 million UNI tokens. This action aims to simulate what would have been destroyed if fees had been active since 2020. It acts as a strong signal to holders: reduce supply, increase scarcity.
Technically, each fee collected is directed to a contract called TokenJar. The UNI are stored there, then transferred to another contract, the Firepit, where they are permanently burned. This system ensures the traceability of monetary destruction.
But Uniswap also innovates in value capture through the Protocol Fee Discount Auction. This mechanism allows certain traders to benefit from fee-free exchanges, provided they participate in the auction… and therefore in the burning of UNI. Thus, the protocol diverts the MEV from the validators to integrate it into its own economy.
What distinguishes this Uniswap reform is its legal structure. Thanks to Wyoming's DUNA law, the DAO becomes a recognized entity. The agreement binding Labs to governance is not a promise: it has legal force.
A series of documents – service agreements, indemnification agreements, and governance – was put to a vote. Two independent negotiators, Ben Jones and Hart Lambur, ensured contractual balance. Any future action by Labs must respect these commitments for the benefit of UNI holders.
In the crypto universe, where DAOs often remain abstract, this initiative offers a concrete path. Other projects, such as MakerDAO or Synthetix, could draw inspiration from it. Structuring governance becomes a credibility challenge on an institutional scale.
Key data and figures
▫️100 million UNI tokens were burned immediately after the vote;
▫️The price of the UNI token is currently $6.08;
▫️The vote gathered nearly 62 million votes, with a quorum set at 40 million;
▫️An annual growth budget of 20 million UNI will be established starting in 2026;
▫️The Protocol Fee Discount Auction could improve LP returns from $0.06 to $0.26 for every $10,000 traded.
Last February, Uniswap took another fundamental step with the launch of Unichain, its own network designed to challenge the competition on Ethereum. This advance, combined with the activation of fees, propels Uniswap into a new era, marked by technological independence and institutional strength.
