Uniswap Votes on 100M UNI Burn and New Fee Switch Proposal
Uniswap’s UNIfication proposal votes on burning 100M UNI and activating a fee switch.
Fee-burning mechanism on v2 and v3 aims to tie protocol revenue directly to UNI value.
Legal contract under DUNA law formalizes governance between Uniswap Labs and the protocol.
Uniswap governance has reached a decisive moment. On Dec. 18, 2025, Uniswap founder Hayden Adams announced that the UNIfication proposal was posted on-chain and would go live for voting on Dec. 19, 2025. The proposal will remain open until Dec. 25, providing token holders almost a week to cast votes.
Adams highlighted the stakes in a social media post, saying that a successful vote would allow major actions after a two‑day timelock, including burning 100 million UNI, activating fee switches for Uniswap v2 and v3 pools, and diverting Unichain sequencer fees to the burn mechanism.
He urged delegates to participate before the holiday, warning that inaction could leave them on “Santa’s naughty list. The final vote follows months of discussion and a Request for Comment (RFC).
Proposal Details: 100M UNI Burn and Fee Mechanism
Uniswap Labs and the Uniswap Foundation jointly propose burning 100 million UNI tokens from the treasury. This retroactive burn is designed to approximate the amount that might have been burned if protocol fees had been active since UNI’s launch.
Eliminating such a large portion of the token supply would reduce UNI’s total circulating supply from roughly 630 million to about 530 million, according to market analyses.
The vote also seeks to activate the long‑debated fee switch on the Ethereum mainnet. Currently, all swap fees go to liquidity providers. Under the proposal, 0.05 percentage points of Uniswap v2 fees would be redirected to a new token jar smart contract, while v3 pools would contribute between one‑quarter and one‑sixth of their fees.
Anyone who burns UNI tokens could withdraw an equivalent amount of crypto from the token jar, effectively reducing supply and tying token value directly to protocol revenue. Additionally, the proposal directs all Unichain sequencer fees, after costs and allocations to the Optimism chain, into the same burn mechanism.
Uniswap’s plan includes a Protocol Fee Discount Auction (PFDA) to compensate liquidity providers and internalize miner‑extracted value (MEV). By auctioning the right to trade without paying protocol fees, Uniswap intends to send winning bids to the burn contract.
Governance Alignment and Legal Framework
Beyond economic adjustments, the UNIfication proposal addresses Uniswap’s organizational structure. The plan recommends transferring most Uniswap Foundation functions—ecosystem support, governance facilitation, and developer relations—into Uniswap Labs.
In return, Labs would end interface, wallet, and API fees and contractually commit to pursuing only initiatives that align with DUNI, the legal entity representing Uniswap governance. This commitment would be captured in a services agreement executed alongside the vote.
Legal certainty comes from Wyoming’s Decentralized Unincorporated Nonprofit Association (DUNA) law. Uniswap governance adopted this framework earlier in 2025, forming DUNI as a legally recognized entity that wraps on‑chain governance. DUNA allows DAOs to own property, sign contracts, and obtain liability protections while preserving decentralization.
According to the UNIfication plan, Uniswap Labs would be subject to a binding services agreement with DUNI that is valid under Wyoming law. This is supposed to ensure that Labs’ operations are always in line with the interests of the token holders. It is expected that the use of the DUNA framework, along with on-chain governance, would help create a bridge between decentralized decision-making and off-chain enforceability.
Related: Uniswap Launches CCA for Better Price and Token Liquidity
Community Reaction and Market Context
The Uniswap proposal has raised questions in the DeFi space. Proponents of the measure believe that burning tokens and taking fees from the protocol would allow the UNI price to be more directly tied to the success of Uniswap and could help push the price higher.
Since there has been over $4 trillion in volume on the site, small fees could add up to a substantial amount of money.
Market reaction has been positive so far. Reports indicate that UNI’s price rose about 5 % to around $5.23 after the vote was announced. Trading volume also spiked more than 80%. News outlets note that investors are positioning ahead of the vote, anticipating a potential supply squeeze if the bill passes.
Disclaimer: The information provided by CryptoTale is for educational and informational purposes only and should not be considered financial advice. Always conduct your own research and consult with a professional before making any investment decisions. CryptoTale is not liable for any financial losses resulting from the use of the content.
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Market News Uniswap (UNI) News
Uniswap takes the UNification proposal to a final vote.
Unification redefines governance and alignment of Uniswap.
UNI burning seeks to strengthen protocol tokenomics.
Protocol fees enter crucial on-chain vote.
The founder of Uniswap, Hayden Adams, officially submitted The proposal for UNIfication is for the final vote on the on-chain governance of the protocol. The deliberation period is scheduled to take place between December 19 and 25 and could mark one of the most significant structural changes in the project's history, should it receive approval from UNI holders.
The announcement was made by Adams in a post on X, in which he encouraged delegates to participate before the deadline, using a humorous tone. "Vote before Christmas or end up on Santa's naughty list," he wrote. The statement quickly resonated within the community, reinforcing the importance of the moment for Uniswap's governance.
Just submitted the Unification proposal for final governance vote
Voting starts on 12/19 at 10.30pm EST and ends on 12/25
If it passes, after a 2 day timelock period:
🔥 100m UNI will be burned
🦄 v2 + v3 fee switches will flip on mainnet and begin burning UNI, along with…
- Hayden Adams 🦄 (@haydenzadams) December 18, 2025
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The proposal is the result of a public consultation conducted by Uniswap Labs and the Uniswap Foundation the previous month. At the heart of the debate is the so-called fee swap, advocated for years by some UNI holders, which seeks to direct a portion of the protocol's trading fees to mechanisms that benefit the ecosystem as a whole.
According to proponents, regulatory factors and legal disputes in the United States, especially during the tenure of former SEC Chairman Gary Gensler, limited the adoption of these changes in the past. The assessment now is that the regulatory context has become more favorable, opening up space for the implementation of the protocol fees.
If approved, UNIification will take effect after a two-day lock-up period. Among the main actions planned is the immediate and retroactive burning of 100 million UNI from the treasury, as well as the activation of protocol fees on Uniswap v2 and v3 on the Ethereum mainnet. Unichain sequencer fees would also feed into the same UNI burning mechanism.
The proposal details a gradual implementation of the new fees, starting with the pools that concentrate the majority of liquidity provider fees. In version 2, the fee would drop from 0,3% to 0,25%, with the difference going to the protocol. In version 3, protocol fees would be set as fractions of existing fees, with possible adjustments via governance over time.
In addition to economic changes, UNification proposes an institutional reorganization. The plan envisions legally binding agreements to align Uniswap Labs with the protocol's governance, under Wyoming's DUNA framework, as well as the transfer of operational responsibilities and the creation of an annual growth budget of 20 million UNI starting in 2026.
Following the submission of the proposal for final voting, the UNI token registered an approximate appreciation of 7,5%, reflecting the market's attention to the possible transformations in Uniswap's governance and economic model.
Disclaimer:
The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.
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Uniswap
Morning Minute: Robinhood Pushes Deeper Into Prediction Markets
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GM!
Today’s top news:
Crypto majors mixed with BTC leading at $87,400
Coinbase rolled out several new products including prediction markets, stocks, equity perps, DEX and more
DTCC to issue tokenized securites on Canton Network
Citadel and other banks plan to spend $100M to counter crypto spend in 2026 elections
Uniswap submits final proposal to turn fee switch on, burn 100M UNI
🎯 Robinhood Pushes Deeper Into Prediction Markets
Robinhood isn’t treating prediction markets like an experiment anymore.
They’re leaning all the way in.
📌 What Happened
Robinhoodannouncedan expansion of its prediction markets offering, adding new NFL player-performance contracts alongside traditional game outcomes.
Users can now trade on events like touchdowns and yardage totals, beyond just winners and spreads.
The company also introduced “preset combo” contracts, which bundle multiple outcomes from a single game into one trade that only pays out if all conditions are met - effectively a parlay-style product.
Robinhood said custom-built combos, where users create their own bundled outcomes, are planned for rollout in 2026.
The firm also framed prediction markets as a standalone product line, pointing to a growing hub with thousands of live contracts across sports, politics, economics, and cultural events.
And they noted that it’s their fastest-growing revenue line.
🗣️ What They’re Saying
“Robinhood is ushering in a new era in which AI and prediction markets will come together to change the future of finance and news.”
“I believe we’re at the very beginning of a prediction market supercycle and as it progresses, we should expect to see adoption and volumes continuing to grow, potentially into the trillions of contracts traded each year.”- Vlad Tenev, Robinhood CEO
“Robinhood and Coinbase going hard on Prediction Markets and every major company looking to adopt one or build a strategy around them.” - Farokh Sarmad, President and Co-Founder of Myriad
“Some people have already started to realize that using prediction markets can be cheaper than conventional fire, flood, and hurricane insurance.”
- Vlad, Robinhood pic.twitter.com/mSSDvJqUVs
— coughdrop (@CoughdropPeter) December 17, 2025
🧠 Why It Matters
Prediction markets are clearly booming.
What’s missing is deep liquidity, distribution, and scale.
Power players like Robinhood leaning in can help solve those issues.
A lot of innovative use cases of prediction markets (i.e. insurance, hedging against bad weather, etc.) are great in theory but not operationally possible right now due to limited market size.
Once these markets are more mature, with more players and deeper liquidity, these kinds of use cases can be unlocked.
So everyone who is pro-prediction market should be cheering this on.
Robinhood shareholders should be cheering this on as well, as the stock popped 3% on the news of their prediction market direction (on a red day) and has jumped 20% since their original announcement.
Robinhood is clearly betting on a prediction market supercycle—let’s see if they can help manifest it into reality…
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🌎 Macro Crypto and Memes
A few Crypto and Web3 headlines that caught my eye:
Crypto majorswere mixed;BTC+0.3% at $87,400; ETH -2% at $2,870; BNB -2% at $838, SOL -3% at $124
BEAT (+26%), Pippin (+9%) and CC (+4%)led top movers
Coinbaseannouncedseveral new products last night, including prediction markets, stock trading, equity perps, AI advisors, borrowing, full DEX integration and more
Senatorsproposedthe SAFE Crypto Act, creating a federal task force to coordinate agencies on crypto scam enforcement and investor protection
The DTCCsaid it will issue tokenized securitieson Canton Network, starting with tokenized U.S. Treasuries
Ex-Alameda CEO Caroline Ellisonleft federal prisonafter 11 months, moving to another government facility or home confinement to serve the rest of her 2-year sentence
The acting CFTC Chair Caroline Phamleft to join MoonPayas its chief legal and administrative office
Citadel and other big banksare planning to spend $100Min the 2026 midterms, potentially opposing pro-crypto spending
Circleannouncedits Arc Builders Fund, meant to support early-stage teams building apps and services on Arc
In Corporate Treasuries / ETFs
The Bitcoin ETFssaw $457M in net inflowson Wednesday, the most in over a month
Hut 8sharesjumpedafter the miner announced a $7B AI/data-center deal involving Google financing
In Memes / Onchain Movers
Memecoin leadersare mostly red;DOGE -2%, Shiba -5%, PEPE -4%, PENGU -6%, BONK -5%, TRUMP -2%, SPX -8%, and FARTCOIN -22%
dydxannounced a partnershipwith Bonk to launch Bonk DEX
67(+86%), ALCH (+20%) and ACT (+25%) led top movers
💰 Token, Airdrop Protocol Tracker
Here’s a rundown of major token, protocol and airdrop news from the day:
The Rainbow Walletteamshared new detailson its class F token structure, solving the issue of tokens not equating to equity (ICO ends today)
Football dot Funreachedtheir ICO soft cap of $3M yesterday ahead of today’s ICO closing
Gondiintroduced new trade combinationsacross token types
Uniswapsubmitted its proposalfor governance vote to burn 100M UNI and turn on fee switch
Hyperlendannounced its airdrop terms and conditionsahead of its airdrop, with eligible participants on a 30-day clock to accept to qualify
Solsticeannouncedits ICO coming on Legion on Dec 22
🚚 What is happening in NFTs?
Here is the list of other notable headlines from the day in NFTs:
NFT leaderswere mixed; Punks even at 27 ETH, Pudgy -1% at 4.62, BAYC -1% at 4.94 ETH; Hypurr’s +3% at 456 HYPE
Rovers(+60%) were a notable mover