Uniswap has proposed a plan to activate a protocol fee switch and implement a mechanism for burning UNI tokens from the treasury.
The proposal seeks to enable a fee switch that would allow for the collection of protocol fees, potentially enhancing Uniswap’s sustainability and financial model. In addition, the introduction of a UNI burn mechanism is intended to reduce the overall supply of the token, aiming to create more value for current holders.
The plan involves burning 1 billion UNI tokens, which would be sourced from the existing treasury. This reduction in supply is anticipated to impact the token’s scarcity and market dynamics positively. The community’s feedback and participation in the decision-making process will be crucial as the proposal is reviewed and discussed.
This initiative reflects Uniswap’s ongoing efforts to evolve its governance and economic structure, responding to the needs of its user base while ensuring long-term viability.
