$UNI $UNI

🦄 Burn and Buy Back 🔥
Burning of 100 Million UNI Tokens (Retroactive Burn)
What it is: A one-time burn of 100 million UNI tokens that are in the Uniswap treasury.
Motivation: This burn is presented as a retroactive compensation to UNI holders for the fee profits that the protocol did not capture in the past ( since the token's launch in 2020), due to regulatory restrictions that prevented the activation of the fee key.
Impact on Supply: The burn represents a significant reduction, estimated at around 10% of the total maximum supply of UNI (1 billion) or about 16% of the circulating supply (approximately 630 million).
Activation of Fee Key (Fee Switch) and Continuous Buyback (Buyback & Burn)
The most crucial point is the activation of the fee switch key (fee switch) of the protocol, which transforms UNI from a "passive" governance token into a deflationary and value-generating asset.
Mechanism: The proposal aims to adjust the 0.3% fee paid to Liquidity Providers (LPs) as follows:
0.25% would continue for the Liquidity Providers (LPs).
0.05% would be allocated to a buyback and burn pool (buyback and burn) of UNI tokens.
Additional Fee Source: The fees from the Unichain Sequencer (, the L2 network of Uniswap ), would also be fully directed to the UNI burn mechanism.
Impact of the Buyback: Analysts project that this mechanism could generate a monthly buyback of about $38 million dollars (approximately $450 million annually), based on historical trading volume. This would create continuous buying demand for UNI in the market.