Uniswap Fee Switch Set to Take Effect Before New Year
Uniswap’s highly anticipated “UNIfication” protocol fee switch is set to go live this week after surpassing the required 40 million vote threshold, with nearly 62 million votes in favor as of early Monday. The upgrade will enable fee switches on Uniswap v2 and v3 after a two-day timelock, triggering the burn of 100 million UNI tokens from the foundation’s treasury. A Protocol Fee Discount Auctions system will also be introduced to boost liquidity provider returns. These changes aim to improve UNI’s supply-demand dynamics and long-term appeal. Since the proposal’s announcement, UNI surged around 25% to $6.08, reversing a previous slump, and news of the upgrade had earlier sparked a 40% rally. Major figures in the crypto space have publicly backed the proposal, and only a negligible number of votes have opposed it. The Uniswap Foundation has affirmed ongoing support for protocol development and growth via grants, with plans to allocate 20 million UNI tokens to a Growth Budget. Uniswap remains the largest decentralized exchange, with over $4 trillion in trading volume and UNI ranked as the 39th largest token by market cap.
