Uniswap’s blockbuster proposal: Activating protocol fees, burning tokens, and restructuring governance structure, UNI soared by more than 40%

Uniswap, a well-established DeFi project, launched the "UNIfication" governance proposal, initiated protocol fees and planned to significantly destroy UNI, stimulating an increase in token prices.
(Previous summary: Uniswap was sued by Bancor for infringement: plagiarizing the CPAMM model patent to seek huge profits, $UNI fell 15% in a week)
(Background supplement: $UNI currency holders will receive income distribution? Uniswap passed a $160 million grant: launching v4 and Unichain incentives)

Contents of this article

Hayden, founder of decentralized exchange giant Uniswap Adams, this morning (11) launched the "UNIfication" governance proposal on the X platform, outlining measures such as starting protocol fees, destroying UNI, and reorganizing the organizational structure, in an attempt to rebind the protocol revenue with the value of the token as regulatory trends change, stimulating the UNI currency price to surge by more than 40% in the past six hours.

Today, I’m incredibly excited to make my first proposal to Uniswap governance on behalf of @Uniswap alongside @devinawalsh and @nkennethk

This proposal turns on protocol fees and aligns incentives across the Uniswap ecosystem

Uniswap has been my passion and singular focus for… pic.twitter.com/Ee9bKDric5

— Hayden Adams 🦄 (@haydenzadams) November 10, 2025

The protocol fee switch is started simultaneously with the destruction of UNI

The first spark of the proposal is to turn on the "protocol fee switch" that has been delayed for many years. In the v2 fund pool, the liquidity provider (LP) profit share will be reduced from 0.3% to 0.25%, and the additional 0.05% will be attributed to the protocol fee, and will be extended to v3, v4 and Unichain.

The accumulated fees will be used to repurchase and destroy UNI. Adams said that if the protocol activates this mechanism from the beginning, 100 million coins could be burned over the years, which is equivalent to an immediate reduction of approximately 16% in circulation. For investors, this mechanism is similar to a company using surplus to repurchase shares, directly reflecting cash flow in the scarcity of tokens.

Organizational Reconstruction after the Legal Ice Break

The "Decentralized Legal Person Association (DUNA)" bill passed in August 2025 provides legal protection for DAO participants and also gives Uniswap the final piece of the puzzle to start the protocol fee.

At the same time, "UNIfication" proposed to streamline the organization, transfer foundation employees to Labs, work together to accelerate the development of the protocol, and provide growth funds from the treasury.

Finally, Uniswap Labs promises to no longer charge for interfaces, wallets, and APIs, and instead focuses on protocol development. In order to maintain operations, the treasury allocates 20 million UNIs every quarter, and uses a service agreement to ensure that Labs actions are consistent with the interests of token holders.

Public Governance Process and Market Observation

According to governance rules, Hayden Adams’ proposal will first be solicited for opinions for 7 days, and then implemented after 5 days of off-chain snapshot voting and 10 days of on-chain voting. At present, the market is generally optimistic about the long-term support of UNI by the fee opening and burning mechanism, and will observe whether other DeFi protocols will follow suit.

If successfully passed, Uniswap's huge basic traffic of more than 1.8 trillion U.S. dollars in transactions per year will be partially converted into token value.

UNI surged 40%

Inspired by this, the UNI token also rose rapidly after the news was made public, rising by more than 40% in six hours, reaching a maximum of $10.3, a two-month high.