- Uniswap’s “UNIfication” burn removes 100M UNI, transforming the token from governance-only to value-accruing asset.
- Over 125M votes supported fee burns, now directly tying protocol usage to token supply reduction.
- UNI wallet holds $1.7B, mainly in UNI; smaller transfers of ETH, USDC, and HYBUX show active treasury management.
Uniswap has just executed a landmark move that could reshape the DeFi landscape. The decentralized exchange burned 100 million UNI tokens, valued at approximately $591 million, after passing its fee burn proposal.
The decision comes as part of Uniswap’s new “UNIfication” initiative, aimed at turning UNI from a governance-only token into a value-accruing asset.
According to blockchain analytics firm Lookonchain, the tokens were sent to a “dead address,” effectively removing them from circulation. The burn reflects retroactive protocol fees that could have accrued since Uniswap’s launch in 2018, signaling a major structural shift.
As per Arkharm data, the Uniswap Timelock wallet now holds roughly $1.696 billion in cryptocurrency, with the majority invested in UNI. Currently, the token trades at $6.29, up 6.25% for the day, and the wallet contains 269.6 million UNI.
Smaller holdings include stablecoins like USDT and USDC, priced at $1, and minor amounts of ETH and other tokens. Notably, ALI showed a 13.84% decline, while other assets remained stable.
Voting and Protocol Fee Changes
The move follows overwhelming voter support for Uniswap’s “UNIfication” proposal. Over five days, the plan received more than 125 million votes in favor and only 742 against. This vote authorized the protocol to route a portion of its fees into a token burn mechanism.
Previously, all fees were directed to liquidity providers, leaving UNI unlinked to platform activity. Henceforth, fee-based burns directly tie usage to token supply reduction, potentially boosting market price.
Uniswap currently averages about $2 billion in daily trading volume and generates an annualized $600 million in fees, according to DeFiLlama. Consequently, even a portion of these fees channeled into token burns could have meaningful market impact. The recent retroactive burn of 100 million UNI exemplifies the scale of this shift and shows the project’s intent to strengthen token value over time.
Recent Wallet Movements
In addition to the burn, the wallet executed smaller transfers. Two days ago, 34,615 UNI moved to another Uniswap-related address. Over the past few weeks, minor transfers of USDC, HYBUX, and ETH occurred, though these were modest compared to the UNI movements. Historical data shows consistent deposits and withdrawals, demonstrating active treasury management.
