AInvest Newsletter
Daily stocks & crypto headlines, free to your inbox


UNI, the governance token of decentralized exchange
, has surged over 40% in 24 hours, breaking the $10 mark amid a major governance proposal to activate protocol fee distribution. The move, dubbed "UNIfication" by Uniswap Labs and the Uniswap Foundation, aims to align incentives across the ecosystem by redirecting a portion of trading fees to tokenholders and implementing a token-burning mechanism.The proposal, announced on November 11, 2025, includes a plan to burn 100 million
tokens—equivalent to $800 million at current valuations—to reduce supply and boost token value, as reported by . Additionally, between 16.7% and 25% of protocol fees from Uniswap v2 and v3 pools will be allocated to a "token jar," allowing holders to burn UNI to withdraw equivalent crypto value, as noted by . This mechanism is designed to create a direct link between protocol usage and token appreciation, a long-standing demand from UNI holders.
Market reactions have been swift. UNI's price surged from $4.95 to $10.50 within a week, with a 30% single-day gain reported, as noted in
. The token's market capitalization now exceeds $7.19 billion, as reported by . Analysts attribute the rally to renewed optimism about Uniswap's ability to capture a larger share of DeFi fees, which totaled nearly $3 billion annually as of November 2025, as reported in .The fee switch has faced regulatory scrutiny in the past. The Uniswap Foundation delayed activation in 2024 over concerns about legal liability for tokenholders, requiring the creation of a Decentralized Unincorporated Nonprofit Association (DUNA) to protect members, as reported by
. With DUNA approved in August 2025, the proposal now clears a major hurdle.Critics argue the move centralizes power within Uniswap Labs, which will control fee distribution and interface monetization. However, proponents highlight the potential for long-term value creation. "Protocol usage driving UNI burn and a unified team focused on growth is a win for the ecosystem," said Devin Walsh, Uniswap Foundation co-founder, as noted in
.The proposal includes a phased rollout, with votes on v4 and cross-chain fee switches pending. If approved, the changes could redefine Uniswap's role in DeFi, positioning it as a dominant player in tokenized value exchange, as noted in
.Quickly understand the history and background of various well-known coins

Dec.02 2025

Dec.02 2025

Dec.02 2025

Dec.02 2025

Dec.02 2025
Daily stocks & crypto headlines, free to your inbox
Comments
No comments yet