Uniswap has concluded a governance-approved burn of 100 million UNI tokens, valued at approximately $590 million, on Ethereum’s mainnet at 4:30 AM UTC on December 28, 2025.
The burn introduces significant deflationary pressure on UNI, marking a major shift in token economics and potentially influencing longstanding liquidity provider behaviors and market dynamics.
Uniswap executed a 100 million UNI token burn following a successful governance vote.
The initiative, called UNIfication, involves Uniswap Labs and the Uniswap Foundation for a unified strategy.
Uniswap Executes 100 Million UNI Burn Through Governance
Key players include Hayden Adams, founder of Uniswap. The action involves a one-time burn from treasury holdings, representing approximately 16% of circulating supply. As Hayden Adams announced, “The vote has passed with 125,342,017 UNI in favor and 742 against.” source
UNI’s $590 Million Burn Sparks Deflationary Pressure
This burn is valued at around $590 million based on current prices. It correlates with activating ongoing protocol fee burns tied to trading volume. Experts anticipate deflationary pressure on the UNI token, noting heightened market stability post-vote with the token trading between $5.80 and $5.90.
Uniswap’s Strategic Shift with Historic UNI Burn
Uniswap’s first large-scale UNI burn marks a strategic shift in tokenomics. Previous attempts lacked this scale and governance alignment. The burn hinges on past governance success rates.
Expert analysis from Kanalcoin highlights potential for improving UNI’s value consistency. Past deflationary measures across DeFi indicate beneficial outcomes, especially in capturing tokenomics value.
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