Uniswap Triggers Deflationary Loop with $600 Million Treasury Contraction

Uniswap Labs permanently burned 100 million UNI tokens valued at $600 million on December 27.

The move executed the on-chain portion of a governance plan designed to closely link the protocol’s revenue to the token’s value.

Uniswap Labs carried out the burn under “UNIfication,” a proposal introduced in November 2025 and approved with overwhelming support on Dec. 25, 2025.

The initiative marks a shift away from the Labs’ prior fee retention model toward a framework built around sustained token burns.

UNIfication has officially been executed onchain

✓ Labs interface fees are set to zero

✓ 100M UNI has been burned from the treasury

✓ Fees are on for v2 and a set of v3 pools on mainnet

✓ Unichain fees flow to UNI burn (after OP & L1 data costs)

Let the burn begin pic.twitter.com/fcr3WY3gPc