Uniswap Fee Switch Proposal Nears Approval as 99% of UNI Voters Support Token Burn

• Uniswap’s UNIfication proposal has received over 69 million votes from UNI holders, with only 700 voting against it as the Dec. 25 deadline nears.
• UNIfication proposes a fee model switch where Uniswap will now collect the fees previously going to LPs to buy and burn UNI tokens.

Uniswap is edging closer to a switch in its fee and token burn model as its most significant proposal receives overwhelming support from its community. Dubbed UNIfication, the upgrade has received just over 69.4 million votes (or 97.88%), with only 742 voting against it at press time. 1.5 million UNI holders abstained from the vote, whose deadline is on December 25th. The minimum votes required for UNIfication to be adopted was 40 million, which the proposal achieved today.

Image Courtesy of The Uniswap Foundation.

What’s UNIfication? Uniswap is one of the world’s largest decentralized trading platforms, processing over $150 billion in monthly trading volume, with more than 200 million unique wallet addresses accessing the platform throughout its lifetime. Founder Hayden Adams says Uniswap has processed over $4 trillion in volume since its launch. UNIfication aims to cement this industry leadership, changing the token and fee models to position UNI at the heart of the protocol. As we reported, it was first proposed in early November by Adams, and a week ago, it hit 63 million votes, prompting the team to submit it for onchain voting.

Last month, we posted a governance proposal to turn on protocol fees & align incentives across the Uniswap ecosystem

UNIfication passed snapshot with 63M+ votes in favor

Tomorrow, the proposal moves to onchain vote pic.twitter.com/Q13qFXE9eY

— Uniswap Foundation (@UniswapFND) December 18, 2025

UNIfication is built around four pillars:

• The Fee Switch

By far the most significant pillar, it activates a change in the fee model to channel a portion of the fees charged to the protocol, rather than the liquidity providers. These fees will be used to buy back and burn UNI, making the network deflationary. While it will initially only affect v2 pools, it will be rolled out over time on v3, other L1s and L2s, v4, and, eventually, aggregator hooks.

• 100 Million Uni Burn

To compensate for the three years during which the fee switch was not activated, the protocol will burn 100 million UNI (approximately 15% of the supply) from the treasury.

• PFDA and Aggregator Hooks

To consolidate the trading volume that leaks to other platforms, the UNIfication introduces Protocol Fee Discount Auction (PFDA), where trades can bid for free discounts in a system that incentivizes further UNI token burns. Uniswap’s v4 will further rely on “hoks” as on-chain aggregators. This allows the protocol to collect fees even when liquidity is provided by other protocols.

• Organizational Restructuring

Beyond the technical changes, the proposal will merge the two organizations that oversee the protocol’s development: Uniswap Labs and the Uniswap Foundation, centralizing operations with an annual $20 million budget. Uniswap (UNI) Rallies 29% UNI has rallied on the back of the success of the UNIfication proposal. While it has only gained** 1%** in the past day, it has been on an upward trend since the proposal was submitted for onchain voting. Since December 18, UNI has surged** 29% **and is trading at $6.03 as of press time.

However, it has opened the week with a 40% dip in trading volume after a slow weekend.