Uniswap’s founder has introduced a groundbreaking proposal called “UNIfication,” aiming to redesign how decentralized finance creates and distributes value. Until now, Uniswap simply shared transaction fees with liquidity providers (LPs). Under this new model, those fees will instead be used to burn UNI tokens—reducing supply and increasing token value over time.
Key changes
• Use transaction and Unichain fees to burn UNI
• Capture MEV profits within the protocol instead of leaking them to external actors
• Collect fees even when routing trades through other DEXs
• Burn 100M UNI from the treasury, simulating retroactive protocol fee activation
• Unify operations under Labs to speed up development and ensure transparency
The goal
Rather than distributing dividends, Uniswap plans to return value through token scarcity. This avoids regulatory risks while strengthening UNI’s long-term economics. By internalizing MEV profits and monetizing cross-DEX routing, Uniswap aims to become the economic hub of DeFi—a platform that captures value from the entire on-chain trading flow, not just its own pools.
On-chain data supports this transition. According to CryptoQuant, Uniswap’s Spot Average Order Size has recently risen sharply as prices dropped below $7. The presence of large whale orders suggests accumulation is underway, indicating that institutional players may be positioning early for this protocol shift.
In essence, Uniswap is evolving from a simple exchange into an integrated revenue engine for DeFi—one where holding UNI itself represents a claim on a growing ecosystem’s value.
Written by XWIN Research Japan
