Uniswap (UNI) founder Hayden Adams has put forward a comprehensive governance initiative called “UNIfication”, aimed at revamping the DEX’s revenue framework and bolstering the long-term sustainability of UNI’s tokenomics.
Uniswap’s proposed “UNIfication” plan would implement protocol-level fees across v2 and v3 pools for the first time. Under the new structure, the 0.3% trading fee would be divided into 0.25% for liquidity providers and 0.05% for the Uniswap protocol. All protocol fees would then be used to buy back and burn UNI tokens, reducing the circulating supply and introducing a deflationary mechanism.
Founder Hayden Adams also proposed a one-time burn of 100 million UNI from the treasury, accounting for tokens that would have been removed if protocol fees had been active since Uniswap’s launch. Additionally, Uniswap’s layer 2 solution, Unichain, will allocate a portion of its sequencer fees to the same burn mechanism.
The proposal further includes structural and governance updates, such as a unified Labs–Foundation model, fee-discount auctions, and new aggregator features in Uniswap v4, designed to expand protocol revenue streams.
Analysts Project $38M in Monthly UNI Buybacks
Crypto analyst @bread_ estimated the potential impact using historical Uniswap data. With roughly $2.8 billion in annualized trading fees, the 0.05% protocol share could generate about $38 million per month for UNI buybacks.
This figure would place UNI ahead of PUMP ($35M monthly) but behind HYPE ($95M monthly) — two leading tokens currently driving price growth through buyback mechanisms.
