Uniswap proposes activating protocol fees, burning UNI, and restructuring governance, aiming to reduce supply and align incentives.

Uniswap has introduced a proposal that would change how value flows through the protocol, including reducing UNI’s circulating supply and activating a burn mechanism tied to trading activity.

The joint proposal, submitted on Nov. 10 and referred to internally as “UNIfication,” will bring the project’s organizational structure and token economics into closer alignment after years of separation.

The proposal would activate protocol fees for the first time and direct a share of those fees toward a perpetual Uniswap Uniswap
uni
30.71%
Uniswap burn, connecting the token’s value to usage of the exchange. This also includes revenue from Unichain, Uniswap’s layer-2 network, where sequencer fees would be added to the burn flow