The Uniswap community has approved a major initiative called UNIfication, which entails significant changes to the protocol’s financial model. The corresponding vote, organized by Uniswap Labs and the Uniswap Foundation, concluded on the night of December 25, 2025. The decision was supported by over 99.9% of participants, with more than 125 million UNI tokens voting “for” and only 742 voting “against.”
This is reported by Finway
Main Changes: Deflationary Mechanism and Token Burn
According to the approved proposal, a one-time burn of 100 million UNI will take place in just two days — this accounts for about 16% of the total circulating supply of the token. Additionally, a portion of the fees received by liquidity providers, as well as the income from the Unichain sequencer, will be directed towards the repurchase and subsequent burning of UNI. The launch of Protocol Fee Discount Auctions (PFDA) and the implementation of “hooks” to attract liquidity to the fourth version of the protocol are also included in the list of updates.
Notably, there will be an actual merger of Uniswap Foundation and Uniswap Labs: the management functions of the latter will be transferred to the Uniswap Foundation, which is expected to strengthen the centralization of protocol governance.
“For” received over 125 million UNI tokens, “against” — 742. The changes will take effect two days after the proposal is approved, resulting in a one-time burn of 100 million UNI.
Market Impact and Strategic Goals of the Initiative
Following the announcement of the voting results, the UNI price showed a significant increase: on the daily chart, the token rose by 3%, and over the week — by 20.7%. At the time of preparing this material, UNI was trading at around $6.
The UNIfication proposal was first presented in November 2025, and voting on it took place from December 20. The main goal of the implemented changes is to create a deflationary model for UNI and to establish a strong foundation for the future development of Uniswap.
The project’s founder, Hayden Adams, emphasized that he considers Uniswap a potential primary platform for token trading, and the implementation of UNIfication will ensure the scaling of the ecosystem for the next decade.