Uniswap Labs and the foundation proposed to activate the fee switch and UNI burn mechanism, with UNI rising nearly 38% in 24 hours

According to The Block, Uniswap is planning to activate the protocol fee switch based on the "UNIfication" governance proposal submitted by Uniswap Labs and the Uniswap Foundation on Monday.

The plan aims to reduce the supply of Uniswap's native UNI token through mechanisms such as activation of a burn mechanism. The "UNIfication" plan will take a multi-faceted approach to reduce token supply. On one hand, it will use the protocol fees earned from the Uniswap decentralized exchange and Unichain sequencer to burn tokens; on the other hand, it will directly burn the existing 100 million UNI tokens in the Uniswap treasury, which were supposed to be burned after the fee switch was activated at the time of token issuance. At the same time, the proposal will prevent Uniswap Labs from earning fees through interfaces, wallets, and APIs, which have accumulated $137 million in earnings from its Ethereum frontend. Currently, the fee ratio for token burning is unclear, but the annualized revenue for various versions of Uniswap is expected to exceed $2 billion. In addition to implementing a plan to reward token holders, the "UNIfication" plan will merge the non-profit Uniswap Foundation into Labs, which is responsible for developing the protocol and Unichain L2.

Coingecko data shows that the current price of the UNI token is $9.01, with a 24-hour increase of 37.9%.