The recent burn of 100 million UNI tokens has significantly impacted Uniswap’s token supply, bringing it down to approximately 730 million UNI from a total supply of 1 billion. This move, which corresponds to a reduction valued at about $596 million, was executed following overwhelming support for the fee-burning proposal known as “UNIfication.”
The governance decision was approved with a striking 99.9% in favor, with over 125 million tokens voting for the change compared to just 742 against it. Key figures in the crypto space, such as Jesse Waldren, Kain Warwick, and Ian Lapham, were instrumental in backing this initiative.
The transaction was finalized around 4:30 am UTC on December 28, marking a significant milestone as one of the largest burns in decentralized finance history. Uniswap Labs announced the successful execution on X, indicating that interface fees for Uniswap Labs would now be zero, while fees on certain pools would contribute to future UNI burns after covering operational costs.
Following the burn, UNI experienced a rise of over 5% in value, with increases noted in both trading volume and market capitalization, according to CoinMarketCap.