Uniswap founder Hayden Adams said on X that UNI token burns have picked up sharply after approval of the “fee switch (RH)” and the V4 proposal. He said 106,000 UNI were burned in a single day yesterday, the third-highest daily total in UNI’s history. Based on the current price, that pace implies an annualized burn value of about $170 million. Uniswap is a leading decentralized exchange in the Ethereum ecosystem, and UNI is its governance token. The increase in burned tokens points to the effect of the protocol’s revenue capture mechanism after a community governance proposal allowed part of trading fees to be used to buy back and burn UNI.
Uniswap founder Hayden Adams said on X that UNI token burns have risen sharply after approval of the “fee switch (RH)” and the V4 proposal.
According to Adams, 106,000 UNI were burned in a single day yesterday, marking the third-highest daily burn on record. At the current price, that works out to an annualized burn pace of roughly $170 million.
Governance change linked to higher burn volume
Uniswap is a leading decentralized exchange, or DEX, in the Ethereum ecosystem, and UNI serves as its governance token. The increase in burn data reflects the activation of the protocol’s revenue capture mechanism. A governance proposal previously approved by the community allows part of protocol trading fees to be used for UNI buybacks and burns.
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