Developers Delivered on Their Promise for This Altcoin: A Massive Token Burn Worth $596 Million Was Conducted – Price Reaction Followed

According to onchain cryptocurrency data, Uniswap’s treasury burned approximately 100 million UNI tokens today.

This transaction, worth approximately $596 million, was carried out under the recently approved Uniswap fee-burning proposal. The new regulation stipulates that future transaction fees collected on the Uniswap protocol will also be used for UNI token burning.

The burning in question came after the UNification proposal was accepted by Uniswap management. The proposal was approved with 99.9% support in the vote. Over 125 million UNI were voted in favor, while only 742 UNI voted against.

Uniswap founder Hayden Adams confirmed the voting result on the X platform. Adams added that the proposal was jointly submitted by Uniswap Labs and the Uniswap Foundation in November and that it activates the protocol’s long-awaited fee switch mechanism.

Under the new mechanism, a portion of transaction fees, previously channeled entirely to liquidity providers, will now be transferred to the protocol and used for UNI burning. Additionally, net sequencer revenue on Unichain will also be included in the burning system. This will create a continuous deflationary cycle aimed at reducing the UNI supply as protocol usage increases.

Following this development, the price of UNI rose by approximately 7% today.

A graph showing the increase in UNI price.