Uniswap burns $596M after management vote on fee change at UNI
Following the approval of the long-awaited fee burn proposal, Uniswap has conducted a massive token burn, withdrawing 100 million UNI from the protocol's treasury, worth an estimated $596 million.
Onchain data shows that the burn transaction was completed on December 28 at 4:30 am UTC, confirming the first major implementation of the administrative decision passed earlier this week, according to analyst EmberCN. The transaction permanently reduced the supply of the Uniswap (UNI) token, one of the largest burns by the decentralized finance protocol.
The much-anticipated change to Uniswap's protocol, dubbed “Unification,” passed with 99.9% support on Thursday. More than 125 million UNI tokens voted in favor of the proposal, with only 742 tokens voting against, indicating a broad consensus among those who voted against.
Several crypto heavyweights have backed the unification proposal, including Jesse Waldron, founder and managing partner at crypto-focused venture capital firm Variant; Cain Warwick, founder of 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 that 100 million has been burned
Uniswap Labs confirmed in a post on X, saying, “Unification has been officially implemented on OnChain.”
As part of the update, interface fees paid by Uniswap Labs have been set to zero, fees have been introduced for Uniswap v2 and a selection of v3 pools on the Ethereum mainnet. Fees generated by Unichain are set to go to UNI Burns after covering Optimism and Layer-1 data costs.
According to CoinMarketCap data, UNI rose more than 5 percent in the last 24 hours following the fire, with trading volume and market capitalization both increasing. The token distribution supply now stands at approximately 730 million UNI, out of a total supply of 1 billion.
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Uniswap Foundation to allocate 20 million UNI for development.
While the proposal is presented, the Uniswap Foundation said it will continue to provide funding to developers and will not end grant programs that support protocol development. The foundation says helping developers is a key priority.
To support this plan, the Uniswap Foundation intends to create a development budget that will distribute 20 million UNI tokens to support development and expansion across the Uniswap ecosystem.
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