Uniswap has conducted a major token burn following the approval of its long-awaited fee burning proposal, removing 100 million UNI, worth approximately $596 million at current prices, from the protocol’s coffers.
Onchain data shows that the burn transaction was completed around 04:30 UTC on December 28, confirming the first large-scale implementation of the board decision passed earlier this week. according to to analyst EmberCN. The transaction permanently reduced Uniswap’s (UNI) token supply, marking one of the largest burns ever executed by a decentralized finance protocol.
The long-awaited change to the Uniswap protocol fees, called “UNIfication,” passed on Thursday with 99.9% support. More than 125 million UNI tokens voted in favor of the proposal, compared to just 742 tokens who voted against, underscoring the broad consensus among token holders.
Several crypto heavyweights with significant voting power supported the UNIfication proposal, including Jesse Waldren, founder and managing partner at crypto-focused venture capital firm Variant; Kain Warwick, the founder of the decentralized financial protocols Infinex and Synthetix; and Ian Lapham, who previously worked as an engineer at Uniswap Labs.
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Uniswap Labs confirms 100 million fires
Uniswap labs confirmed the execution in a message on
As part of the update, the interface fees charged by Uniswap Labs were reset to zero, while fees were activated on Uniswap v2 and a selection of v3 pools on the Ethereum mainnet. The fees generated by Unichain will also flow to UNI burns, after covering the Optimism and Layer-1 data costs.
UNI rose more than 5% in the past 24 hours after the fire, with trading volume and market capitalization both increasing, according to data from CoinMarketCap. The circulating supply of the token now stands at approximately 730 million UNI, out of a total supply of 1 billion.
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Uniswap Foundation will set aside 20 million UNI for growth
When the proposal was introduced, the Uniswap Foundation said it would continue to fund builders and would not discontinue grant programs that support protocol development. The foundation said helping developers remains a top priority.
To support this plan, the Uniswap Foundation plans to create a growth budget that will distribute 20 million UNI tokens to finance the development and expansion of the Uniswap ecosystem.
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