Uniswap's Landmark $600 Million UNI Token Burn Fuels Price Surge

Uniswap Executes $600 Million UNI Burn

On December 27, Uniswap Labs conducted a significant on-chain burn of 100 million UNI tokens valued at $600 million, marking a pivotal moment in its governance strategy.

Deflationary Pivot Boosts UNI

The initiative, dubbed "UNIfication," was overwhelmingly supported and approved on December 25, 2025. It signals a transition from the previous fee retention model to a deflationary framework, where protocol fees are directed towards buying and burning UNI tokens.

Market Reaction and Structural Changes

Following the burn, UNI's value climbed over 6%, reaching $6.38. This development aligns with Uniswap's role as a leader in decentralized exchange trading, operating across 40 blockchain networks and processing over $60 billion in trading volume last month, according to DefiLlama.

As part of the broader UNIfication strategy, Uniswap Labs will integrate the Uniswap Foundation's employees, funded by the treasury's growth fund, to streamline development and operations. The firm also anticipates future governance proposals for additional revenue mechanisms, potentially including fees on layer-2 networks and Uniswap v4.