Source: Yellow Original Title: The Uniswap commission switch vote passes with 62M tokens; the price of UNI rises by 25%

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Uniswap Voting

Uniswap has successfully passed the required threshold of 40 million votes for its historic governance proposal.

The "UNIfication" proposal will activate the protocol's fee switch and burn 100 million UNI tokens from the treasury.

As of Monday, approximately 62 million votes supported the measure, with fewer than 1,000 against.

The voting closes on December 25, followed by a two-day lock before implementation.

UNI has risen by 25% since voting began on December 20.

The token traded around $6.08, recovering from a one-month drop.

The market capitalization of Uniswap is approximately 3.8 billion dollars.

What happened

The governance voting marks the first time that Uniswap will directly link the protocol's revenue with the token economy.

The commission switch redirects a portion of the trading fees from liquidity providers to mechanisms controlled by the protocol.

These commissions will feed a programmatic token burn system.

The immediate burn of 100 million UNI from the treasury aims to compensate holders for years without value accumulation.

This reduces the circulating supply from 629 million to 529 million tokens.

The proposal also introduces a Protocol Fee Discount Auction system (Protocol Fee Discount Auction).

The commissions from the Unichain sequencer, minus operating costs, will also feed the burning mechanism.

Uniswap Labs will reduce frontend fees to zero while governance allocates an annual growth budget of 20 million UNI.

Why it is important

Since its launch in 2018, Uniswap has processed over 4 trillion dollars in trading volume.

Despite this dominance, UNI holders have lacked direct exposure to the protocol's revenues.

The debate over the fee switch has persisted for years, hindered by regulatory uncertainty and governance conflicts.

The recent legal reforms and the adoption of Wyoming's DUNA framework addressed concerns about liability.

Token burns create deflationary pressure by permanently removing circulating supply.

This mechanism directly links the activity of the protocol with the scarcity of the token.

The voting represents broader trends in DeFi towards sustainable token economies and a clearer value capture for holders.