UNI Price Surges 42% Following Uniswap Proposal

The price of Uniswap’s native token, UNI, jumped more than 42% after Uniswap Foundation and Uniswap Labs announced a new proposal designed to make UNI token ownership more appealing to investors. The proposal, named “UNIfication,” outlines plans to activate protocol fee mechanisms that will burn UNI tokens and establish Protocol Fee Discount Auctions to improve liquidity provider (LP) rewards.

The Uniswap team also intends to burn 100 million UNI tokens, approximately 16% of the circulating supply, from the treasury. This aims to balance the supply and demand of UNI, which functions as a governance token for the decentralized exchange Uniswap.

Transaction fees from Unichain, Uniswap’s Ethereum Layer-2 network, which has generated roughly $7.5 million annually since its launch nine months ago, will also be directed to the same UNI token burn mechanism. The move marks a new phase for Uniswap, dubbed the “era of UNIfication,” according to the Uniswap Foundation.

“We believe this proposal will position Uniswap as the leading decentralized exchange for tokenized value exchange,” the Uniswap Foundation stated.

Following the announcement, UNI’s price rose to $10, providing a substantial boost to the token which had previously lagged behind the performance of Bitcoin (BTC), BNB, and Solana (SOL). UNI’s market capitalization now exceeds $6 billion, ranking it as the 34th largest cryptocurrency worldwide.

Since its launch in November 2018, Uniswap has processed over $4 trillion in transactions, establishing it as the largest decentralized exchange. The Foundation emphasized that the new plan will continue to focus on grants to support DeFi developers and ecosystem growth, with a Uniswap Growth Budget allocated at 20 million UNI per quarter for protocol and ecosystem development.

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility.