Uniswap Fee Switch Expected to Initiate Significant Token Burns as Voting Concludes — Will UNI Hit $10?

The Uniswap community is poised to make a historically significant governance decision by voting to activate a fee switch and initiate the burning of a substantial amount of UNI tokens. This event, termed "UNIfication," has garnered substantial backing and is on track to be implemented shortly.

Key Takeaways

The Uniswap community is voting on the “UNIfication” proposal to implement a fee switch and burn 100 million UNI tokens.
The vote has garnered more than 69 million UNI tokens in support, far exceeding the 40 million needed for approval.
The governance changes aim to enhance economic benefits for UNI holders aligning protocol revenue directly with token supply dynamics.
UNI's price has already risen by about 25% since the voting began, currently trading around $6.08 as it seeks to reach the $10 mark.

Uniswap Fee Switch Expected to Initiate Significant Token Burns as Voting Concludes — Will UNI Hit $10?

Uniswap Vote Approaches Conclusion with Strong Support

As of early Monday, over 69 million UNI tokens have been cast in favor of the proposal, far surpassing the 40 million required for successful approval. Voting commenced on December 20 and will continue through Christmas Day, with opposition numbers remaining minimal. Out of all votes cast, only around 740 were against the proposal, accounting for about 0.001%, while about 1.5 million UNI were marked as abstentions.

Uniswap Vote Approaches Conclusion with Strong Support

More than 6,000 addresses have already taken part in the voting process, with nearly 100% support among active participants.

Hayden Adams, CEO of Uniswap Labs, noted that once the vote officially closes, there will be a two-day time lock before the changes are enacted. This proposal also allows for the immediate burning of 100 million UNI from the Uniswap Foundation’s treasury. Additionally, the governance package proposes a Protocol Fee Discount Auctions system to enhance returns for liquidity providers while consolidating Uniswap Labs, the Uniswap Foundation, and on-chain governance under Wyoming’s DUNA framework.

Prominent figures in decentralized finance, including Variant founder Jesse Waldren, Synthetix and Infinex founder Kain Warwick, and former Uniswap Labs engineer Ian Lapham, have expressed their support for the UNIfication proposal, with each holding significant voting strength.

Will the Fee Switch Finally Benefit UNI Holders?

This vote comes at a time when the decentralized finance (DeFi) space is engaged in discussions about sustainable token economics and long-term value generation. Many protocols are struggling to translate substantial usage into real benefits for their token holders, a point of critique for Uniswap, despite its leading market position.

Uniswap is recognized as the largest decentralized exchange by trading volume, having facilitated over $4 trillion in transactions since its launch in 2018. However, UNI holders have historically had limited direct access to the protocol's revenues.

Proponents of the fee switch believe that by linking protocol revenue directly to UNI supply dynamics, this narrative may change.

The response from the market has been rapid. Since voting commenced, UNI has risen by around 25%, trading at approximately $6.08, recovering from a one-month slump which saw its price dip to a seven-month low of $4.88.

Will the Fee Switch Finally Benefit UNI Holders?

Earlier news of the proposal in November led to an even larger price spike, with UNI soaring nearly 40% in just a few days, reaching $9.70 briefly on November 11 before the broader market experienced a downturn.

Can UNI Reach $10 Before the Year’s End?

According to data from CoinGecko, UNI currently sits as the 38th largest cryptocurrency by market capitalization, valued at about $3.8 billion.

From a technical standpoint, UNI’s price movements have attracted renewed attention as the governance process draws to a close. The token recently rebounded off the lower edge of a multi-year ascending channel that has charted its recovery since the post-2021 downturn.

Can UNI Reach $10 Before the Year’s End?

Analysts monitoring this trend highlight that this price zone has historically demonstrated strong demand, typically followed by higher reaction points after each retest. In the short term, UNI will meet resistance in the $6.80 to $7.20 range, with a denser supply likely around $9 and above.