Uniswap turns on the fee switch, potentially repurchasing and burning approximately $460 million worth of UNI annually, with an annual deflation rate of about 5%.

Odaily Planet Daily reports that KOL “@MichaelLiu93” stated that the launch of the protocol fee collection and the 100 million UNI token burn mechanism by Uniswap will be regarded by the industry as a key milestone marking the entry of DeFi into the “cash flow valuation era.” This mechanism enables UNI to have genuine cash flow support for the first time, directly linking the token’s value to the protocol’s revenue, and pushing DeFi from narrative-driven to profit-driven. Analysis indicates that Uniswap will allocate approximately $460 million annually for buybacks and burns, with an annual deflation rate of about 5%. Its valuation metrics are approximately a P/E ratio of 21 and a P/S ratio of 3.5. Compared to Hyperliquid (P/E 37x) and Pump (P/E 6–8x), UNI combines reasonable valuation with growth potential, becoming the first “valued token” among DeFi blue chips.