- Uniswap UNIfication proposal would split trading fees, using 0.05% to buy and burn UNI tokens, creating a deflationary effect.
- This could generate around $38M in monthly UNI buybacks, strengthening the token’s long-term value.
Uniswap founder Hayden Adams has unveiled the “UNIfication” proposal, a comprehensive governance plan designed to reshape the decentralized exchange’s revenue model and reinforce UNI’s long-term value. The proposal introduces a protocol-level fee mechanism across Uniswap v2 and v3 pools, marking a pivotal change in the platform’s tokenomics.
Today, I’m incredibly excited to make my first proposal to Uniswap governance on behalf of @Uniswap alongside @devinawalsh and @nkennethk
This proposal turns on protocol fees and aligns incentives across the Uniswap ecosystem
Uniswap has been my passion and singular focus for… pic.twitter.com/Ee9bKDric5
— Hayden Adams 🦄 (@haydenzadams) November 10, 2025
Under the new structure, Uniswap splits the 0.3% trading fee into 0.25% for liquidity providers (LPs) and 0.05% for the protocol. The protocol uses its collected fees to buy and burn UNI tokens, reducing the circulating supply and creating a deflationary mechanism that enhances token scarcity over time.
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One-Time Burn and Layer 2 Fee Integration
Beyond the recurring buybacks, Adams also proposed a one-time burn of 100 million UNI from the treasury. This move accounts for tokens that would have been removed had protocol fees been active since Uniswap’s inception. Additionally, Uniswap’s layer 2 solution, Unichain, will allocate a portion of sequencer fees to the same burn mechanism, further amplifying the deflationary impact.
Estimated $38M in Monthly UNI Buybacks
Crypto analyst @bread_ calculated the potential effect of this new fee structure using historical Uniswap data. With roughly $2.8 billion in annualized trading fees, the 0.05% protocol share could generate approximately $38 million every 30 days for UNI buybacks. This figure surpasses PUMP’s $35 million monthly pace but trails HYPE’s $95 million, positioning UNI competitively among tokens leveraging buyback strategies to drive value.
Using historical numbers, this is how $UNI would stack up against current buyback tokens.
→ 0.3% LP fee becomes 0.25% (LP)/0.05% (UNI)
→ 0.05% over ~$2.8B annualized fees and you get ~$38m in buybacks every 30dWould put it ahead of $PUMP ($35M) and behind $HYPE ($95M) https://t.co/bXd35QDV6h pic.twitter.com/2KR0abGKm2
— BREAD | ∑: (@bread_) November 10, 2025
Governance and Feature Updates
The UNIfication proposal also includes structural and governance changes. It introduces a unified Labs–Foundation model, fee-discount auctions, and new aggregator features in Uniswap v4. These updates aim to expand revenue sources for the protocol and create a more streamlined governance system, aligning incentives for both users and stakeholders.
If approved, the UNIfication plan could not only enhance UNI’s tokenomics but also serve as a blueprint for other decentralized exchanges seeking sustainable value accrual through deflationary mechanisms and governance reforms.
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