Uniswap’s fee switch is set to take effect before the new year.
The much-anticipated change to Uniswap's protocol, called “Unification,” is set to pass later this week, reaching the 40 million vote threshold needed for the biggest overhaul in the decentralized exchange protocol's seven-year history.
In the year Nearly 62 million votes have been cast in favor of the unity government's proposal since voting opened on December 20, with voting set to close on Thursday, Christmas Day, from early Monday.
Uniswap Labs CEO Hayden Adams said on Thursday that following a two-day deadline for a successful vote, the Uniswap v2 and v3 payment converters will be replicated on the Unichain network, allowing more Uniswap (UNI) tokens to be burned.
The proposal is to burn 100 million UNI tokens from the Uniswap Foundation's treasury, and protocol fee discount auctions will be implemented to increase liquidity providers' returns.
The changes are expected to significantly improve UNI Token's supply-demand dynamics and make it a more attractive token to hold in the long term.
UNI has gained nearly 25% since the opening of unification voting and is currently trading at $6.08, helping to snap out of a month-long slump and down to a seven-month low of $4.88.
News of the union proposal sparked a nearly 40% rally in the UNI token in early November, taking it from $7 to $9.70 on November 11.
Uniswap is the largest decentralized exchange and has traded more than $4 trillion since its launch in November 2018. According to CoinGecko data, UNI is the 39th largest token by market cap, at $3.8 billion.
The big names are behind the proposal
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 finance protocols Infinex and Synthetix, and Ian Lapham, formerly an engineer at Uniswap.
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Only 741 votes, about 0.001% of those cast, were against the proposal, with a little over 1.5 million abstentions.
Uniswap still prioritizes protocol development
At the time of the proposal, the Uniswap Foundation assured builders that it would not cancel grants to improve protocol development and growth.
The Uniswap Foundation plans to create a development budget to achieve these goals, which includes the distribution of 20 million UNI tokens.
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