Uniswap founder Hayden Adams has proposed a sweeping governance reform titled “UNIfication,” marking his first-ever proposal in the protocol’s history. The plan introduces a fee activation system, UNI-burning mechanism, and structural realignment aimed at strengthening the decentralized exchange’s long-term sustainability.
The UNIfication proposal seeks to transform Uniswap into a deflationary and self-sustaining protocol. It activates protocol fees across Uniswap v2 and major v3 pools on the Ethereum network. For v2, liquidity providers will earn 0.25% per trade, with 0.05% allocated to the protocol. In v3, governance will receive between one-fourth and one-sixth of LP fees, depending on the fee tier.
The initiative includes a retroactive burn of 100 million UNI from the Uniswap treasury, equivalent to what might have been destroyed if fees had been active since inception. Additionally, all sequencer fees from Unichain, approximately $7.5 million annually after costs, will be funneled into the burn mechanism, reducing the circulating supply.
Adams’ proposal also introduces Protocol Fee Discount Auctions, allowing users to bid for fee-free trading periods. Meanwhile, aggregator hooks in the upcoming Uniswap v4 will enable the platform to collect fees from external liquidity sources, according to the blog.
Restructuring the Uniswap Ecosystem
Beyond tokenomics, the plan restructures Uniswap’s operational model. Uniswap Labs will stop collecting fees from its app, wallet, and API, redirecting those funds toward protocol development. Employees from the Uniswap Foundation will move under Labs as part of a new growth fund, aligning both entities under a unified strategy.
Furthermore, Unisocks’ liquidity will migrate to Unichain’s v4 before being permanently burned, symbolizing a clean integration across Uniswap’s evolving ecosystem. Adams emphasized that these measures aim to simplify governance, accelerate innovation, and strengthen Uniswap’s competitive edge.
The governance process for UNIfication will span 22 days, featuring a 7-day comment phase, a 5-day snapshot vote, and a 10-day on-chain execution window. Community approval is required before the proposal becomes effective. Adams, addressing the community on X, highlighted how past regulatory constraints limited Uniswap Labs’ participation in governance but affirmed that “those restrictions end today.”
UNI Market Reaction
The announcement sparked immediate optimism among investors. UNI surged over 40% to reach $10, marking a two-month high and signaling renewed confidence in the project’s direction.
At press time, UNI traded around $9.43, maintaining a strong uptrend supported by increased trading activity. CryptoQuant CEO Ki Young Ju estimated that with $1 trillion in annualized volume, the new fee system could result in $500 million in annual UNI burns, creating a potential supply shock.
Uniswap could go parabolic if the fee switch is activated.
Even just counting v2 and v3, with $1T in YTD volume, that’s about $500M in annual burns if volume holds.
Exchanges hold $830M, so even with unlocks, a supply shock seems inevitable. Correct me if I’m wrong. https://t.co/39QjJsw9uQ pic.twitter.com/3FQzAmuOP3
— Ki Young Ju (@ki_young_ju) November 11, 2025
The CoinRemark Team
Brenda Kanana
