When the 100M UNI burning proposal is passed, the price of Uniswap will increase

Uniswap token UNI traded at $5.90 on December 26, 2025. A 100 million UNI token burner may increase the price.

The Uniswap community has approved a fundamental governance proposal known as “Unification”, marking a significant change for the leading decentralized exchange (DEX).

This decision activates protocol fees and starts burning large tokens.

Uniswap wants to transform UNI from a simple management tool to an asset that holds true economic value from platform activity.

With transaction volumes consistently high, this move could create renewed interest and upward pressure on the token's price.

Uniswap passed the “unification” proposal

The unification proposal, jointly submitted by Uniswap Labs and Uniswap Foundation, was boarded by a management vote with unanimous support.

Over the course of several days, more than 125 million UNI votes were cast, undermining hundreds of opponents and easily surpassing the required quorum.

At its heart, the proposal flips on the long-dormant protocol fee switch. Uniswap, the largest DEX in cryptocurrency, handles approximately $2 billion in daily trading volume, processing hundreds of millions of annual payments based on data from platforms like DeFillama.

Previously, these fees were paid entirely to liquidity providers, leaving UNI holders with only management rights and no direct connection to exchange performance.

Now, some of the payments will flow to a chain specifically built to reduce the supply of tokens through burns. This creates a direct correlation: higher platform usage results in more tokens removed from circulation, which can support inflation over time.

Additionally, the approval will trigger a one-time retroactive burn of 100 million UNI tokens from the treasury.

This move, which is estimated at approximately 590 million dollars according to recent market prices, will be followed by Uniswap in 2018. This is to compensate for fees that may accrue if the switch is activated early after it starts in 2018.

The changes will take effect after a short administrative lock-in period, furthering Uniswap's evolution towards sustainability and strengthening the bond between protocol development and token holders.

UNI's price tags will change to around $5.90

Following the approval of the resolution, UNI showed signs of building momentum, trading at the $5.90 level as markets digested the implications of a rate cut.

Technical indicators indicate a possible bullish reversal after a period of consolidation.

As the chart below shows, the Relative Strength Index (RSI) is currently hovering above the neutral range around 53. It does not indicate up and overbought or oversold conditions. This position leaves enough room to move up without the risk of immediate fatigue. It suggests that buyers may enter strongly on positive developments.

A more encouraging histogram is the Moving Average Convergence Divergence (MACD) which is positive on recent readings. This reflects growing bullishness and a typical setup for a trend reversal.

Analysts note that sustained momentum here could propel UNI toward short-term targets. In this context, the $6.50-$6.60 range could be critical for bulls if volume increases.

The combination of these indicators supports a bullish price outlook alongside underlying stimulus from fee activation and supply contraction. As protocol activity is directly linked to token burning, UNI looks poised for renewed momentum in the coming months.