Uniswap overwhelmingly approved the activation of protocol fees and a UNI token burn mechanism, a shift that directly links DEX activity to the token’s supply. The vote closed with more than 125 million votes in favor and just 742 against.
The proposal enables protocol-level fees and redirects a portion of them to an onchain mechanism that reduces UNI supply. According to DeFiLlama data, Uniswap processes roughly $2,000 million in daily trading volume and generates about $600 million in annual fees, which until now were fully allocated to liquidity providers.
As part of the change, the protocol will also execute a retroactive burn of 100 million UNI from the treasury, valued at more than $590 million, to reflect fees that could have accrued since the exchange launched in 2018.
This shift redefines UNI’s economic role, moving it beyond a governance-only token, and marks a change in how Uniswap distributes the value generated by its activity
Source: https://vote.uniswapfoundation.org/proposals/93
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