Uniswap News Today: Uniswap Proposal Aims to Redirect Fees, Burn 100M UNI

Uniswap founder Hayden Adams has submitted the UNIfication proposal for a final onchain governance vote, with the decision window running from Dec. 19 to Dec. 25. The proposal includes activating protocol fee switches, burning 100 million UNI from the treasury, and aligning Uniswap Labs with governance under a legally binding agreement according to reports. Adams urged token holders to cast their votes before Christmas, warning that inaction could land them on Santa's "naughty list" as research shows.

This move comes after a previous request for comment proposal from Uniswap Labs and the Uniswap Foundation last month. If approved, the proposal will take effect after a two-day timelock and trigger a series of onchain actions to restructure the flow of value within the Uniswap ecosystem according to data.

The proposal has drawn attention for its potential to shift how fees are distributed, with a portion of trading fees being redirected from liquidity providers to the protocol. This follows years of legal uncertainty and a challenging regulatory environment that discouraged fee activation.

Key Changes in the UNIfication Proposal

The UNIfication proposal outlines several major changes to Uniswap's governance and fee structures. It begins with a retroactive burn of 100 million UNI from the treasury, representing an estimate of what might have been burned if protocol fees had been active at the token's launch according to analysis. The proposal also activates protocol fee switches on Uniswap v2 and v3 on Ethereum mainnet, with plans to address v4 through a separate governance proposal according to reports.

Uniswap has been one of the top-performing DeFi protocols in 2025, generating nearly $100 million in monthly fees and over $1 billion year-to-date according to financial data.

The proposal details a phased rollout of protocol fees to minimize disruption, starting with Uniswap v2 pools and a selected set of v3 pools that account for the majority of liquidity provider (LP) fees on Ethereum according to research.

On v2, liquidity provider fees would drop from 0.3% to 0.25%, with the remaining 0.05% directed to the protocol. On v3, protocol fees would be set as fractions of LP fees, with initial parameters set at one-quarter for 0.01% and 0.05% pools and one-sixth for 0.30% and 1% pools according to technical details. Governance will retain the ability to adjust these parameters over time.

Governance and Legal Reorganization

Beyond fee changes, the proposal includes a broader reorganization of the Uniswap ecosystem, aiming to align Uniswap Labs with the interests of UNI token holders. Under the plan, Uniswap Labs would enter a legally binding services agreement under Wyoming's Decentralized Unincorporated Nonprofit Association (DUNA) framework according to legal analysis. This structure is intended to ensure the organization's activities remain aligned with the interests of token holders.

The governance package also shifts operational responsibilities from the Uniswap Foundation to Uniswap Labs. This includes eliminating interface, wallet, and API fees while establishing an annual growth budget of 20 million UNI funded from the treasury starting in 2026 according to the proposal. The proposal frames these changes as part of a long-term model in which protocol usage drives UNI burns while Labs focuses on protocol development and growth according to the plan.

Uniswap's native token has responded positively to the news, trading up around 7.5% following the submission of the proposal for a final vote according to market data.

Broader Market Context

While Uniswap's governance proposal is a major development in the DeFi space, other companies have also seen significant shareholder activity. For example, UniFirst Corporation reported voting results for its annual meeting of shareholders, where the company recommended support for its director nominees according to official results. Additionally, UWM Holdings CEO Mat Ishbia and his affiliated entity sold approximately $6.8 million in stock through a pre-arranged trading plan according to insider trading data.

Meanwhile, in the corporate governance arena, Sumeet Industries announced plans to acquire a minor stake in a renewable energy company, aiming to access 4.20 MW of wind energy for captive consumption according to business reports. In another move, Matrimony.com's board approved a share buyback of up to Rs 58.5 crore, reflecting confidence in the company's value according to market analysis.

Zambia also saw political developments, with lawmakers backing a constitutional amendment ahead of national elections. The proposed changes drew criticism from opposition groups, who viewed them as efforts to favor President Hakainde Hichilema's ruling party according to political analysis.