Uniswap Gains Momentum as Governance Vote Favors Major UNI Burn
Uniswap Governance Vote Nears Completion
Key Highlights
- The governance vote on Uniswap's UNIfication proposal is approaching its conclusion.
- UNI token value increases as the vote deadline nears.
Uniswap's UNI token is experiencing an upward trend as the community votes on the 'UNIfication' proposal, a governance initiative aimed at implementing protocol fees and a direct token-burn system. The voting commenced on December 20 and is set to conclude shortly.
According to CoinGecko, UNI surged from approximately $5.4 to $6.4 during the initial voting phase, before aligning with broader market trends. Over the last day, the token has climbed by about 1.5%, trading near $6.
The current voting results indicate strong support, with over 120 million UNI votes in favor and just 742 against, significantly surpassing the 40 million quorum requirement, although the voting period remains open.
The UNIfication proposal, introduced by Uniswap Labs and the Uniswap Foundation, seeks to activate protocol fees and funnel them into a UNI-burning mechanism, progressively implementing these changes across pools and networks.
It also suggests burning 100 million UNI from the treasury and centralizing ecosystem operations under Uniswap Labs, aiming to eliminate product-level fees and enhance protocol adoption.
Proponents argue that the proposal establishes a sustainable model where increased protocol usage directly decreases token supply and better aligns Labs' incentives with the Uniswap ecosystem.