The current price of UNI may be severely underestimated! Uniswap is at the most critical turning point in its protocol history, with core developments focusing on the 'UNIfication' governance proposal and its fundamental overhaul of token economics.
UNIfication Proposal
Launching the 'fee switch', the community is currently voting on the UNIfication proposal (December 19 to 25, 2025). If approved, Uniswap will officially initiate a protocol fee distribution mechanism that has been discussed for years.
Token Burn Mechanism
The proposal plans to directly burn 100 million UNI from the treasury (approximately 10% of the total supply, worth about 800 million USD). In addition, a portion of trading fees from future V2 and V3 protocols will go into a smart contract called 'Token Jar', which will be used to repurchase and burn UNI, thereby creating ongoing deflation.
Valuation Logic Change
UNI is transitioning from a purely 'governance token' to a value-capturing asset with 'real yields'. This fundamental change directly links the protocol's massive trading volume with the token's value.
