Uniswap proposes to burn 100 million UNI tokens, and the fee switches for v2 and v3 will be officially enabled.

Hayden Adams, the founder of Uniswap, recently announced that Uniswap has officially submitted a “Unified Governance Proposal” and will enter the final governance voting phase. This proposal is regarded as a key milestone in Uniswap’s governance history, involving the burning of UNI tokens, protocol fee distribution, and legal governance consistency.

According to official information, the governance vote will officially open at 10:30 PM Eastern Time on December 19 and will run until December 25. Hayden Adams also urged all governance representatives to complete their votes before Christmas, humorously warning they will be “placed on Santa’s naughty list,” emphasizing the importance of voting in a lighthearted manner.

If the proposal passes smoothly, after the voting concludes and a two-day lock-up period, the Uniswap protocol will undergo several substantive changes. First, 100 million UNI tokens will be burned in a single event within the Uniswap ecosystem, directly reducing circulating supply and potentially serving as a long-term positive factor in the market.

Second, the fee switches for Uniswap mainnet v2 and v3 will be officially enabled. Once activated, the protocol will begin processing generated fees, with part of the fees used to burn UNI tokens. Additionally, fees generated by the Unichain network will also be incorporated into the burn mechanism. This signifies that Uniswap is moving further from a “governance token only” model toward a “value capture token model.”

More notably, this proposal also involves significant upgrades in governance and legal aspects. According to the proposal, Uniswap Labs will enter into a legally binding contract to ensure consistency with the governance outcomes. The protocol will operate under the DUNA framework in Wyoming, USA, providing a clearer connection between decentralized protocols and the legal system.

This move is seen as helping to enhance the credibility and enforceability of Uniswap governance, while also offering an important example for DeFi protocols exploring compliance and legal certainty.

Overall, this unified proposal not only concerns adjustments to the UNI token economic model but also marks a comprehensive upgrade in protocol revenue distribution, governance execution, and legal structure. As the final vote approaches, market and community attention is rapidly increasing, and the outcome could have a profound impact on Uniswap’s future development.