Uniswap’s long-awaited protocol fee switch proposal, known as UNIfication, is on track to pass and could mark one of the most important upgrades in the DEX’s 7-year history.
More than 62M votes have already been cast in favor well above the 40M threshold with voting set to close on Thursday (Christmas Day). If approved, the proposal enters a short timelock before activating fee switches on Uniswap v2 and v3 via Unichain.
According to Uniswap Labs CEO Hayden Adams, activation would trigger UNI token burns, including 100M UNI from the Uniswap Foundation treasury. A new Protocol Fee Discount Auctions system would also go live, aimed at improving liquidity provider returns.
The market is already reacting. UNI is up ~25% since voting began and now trades near $6, rebounding from recent lows. Earlier news of UNIfication sparked a nearly 40% rally in November, highlighting how closely UNI’s
valuation is tied to governance outcomes.
The proposal has strong backing from major DeFi figures, with opposition votes representing just ~0.001% so far. Importantly, the Uniswap Foundation confirmed that builder grants and protocol development remain a priority, alongside plans for a new Growth Budget funded with 20M UNI.
If passed, UNIfication could materially reshape UNI’s supply-demand dynamics.and redefine its long-term investment narrative.
