UNI surges 38% after Uniswap’s UNIfication proposal announcement

The price of UNI, the native token of the Uniswap platform, surged over 38% following the announcement of the “UNIfication” proposal by Uniswap Foundation and Uniswap Labs. The plan introduces a protocol-level fee mechanism to burn UNI tokens and other measures designed to increase the attractiveness of holding the token.

Under the proposal, the “Protocol Fee Discount Auctions” will provide additional returns for liquidity providers, while approximately 100 million UNI tokens from the treasury will be burned to reduce circulating supply. Fees generated from Uniswap’s Layer 2 Ethereum activity will also be directed to the token burn mechanism.

Market reaction was positive, with UNI prices rising sharply, signaling investor confidence in the long-term benefits of the measures. Additionally, Uniswap Foundation announced a budget of 20 million UNI tokens to support ecosystem development and fund DeFi projects.