Uniswap founder Hayden Adams has unveiled the “UNIfication” proposal, a major governance overhaul that could trigger $38M in monthly UNI buybacks.
Summary
- The plan splits Uniswap’s 0.3% trading fee into 0.25% for LPs and 0.05% for the protocol, with collected fees used to buy and burn UNI tokens.
- Based on historical data, one analyst estimated the new fee share could generate around $38M per month in UNI buybacks — surpassing PUMP’s $35M pace and trailing HYPE’s $95M.
Uniswap unveils proposal to reshape UNI tokenomics
Uniswap (UNI) founder Hayden Adams has recently introduced a sweeping governance proposal called “UNIfication,” designed to restructure the DEX’s revenue model and strengthen UNI’s long-term tokenomics.
The plan would activate protocol-level fees across Uniswap’s v2 and v3 pools for the first time. Under the new structure, the current 0.3% trading fee will be split into 0.25% for liquidity providers and 0.05% for Uniswap protocol. All fees collected by the protocol will then be used to buy and burn UNI tokens, reducing its circulating supply and introducing a deflationary mechanism.
Adams also proposed a one-time burn of 100 million UNI from the treasury to account for tokens that would’ve removed if fees had been active since the project’s inception. In addition, Uniswap’s layer 2 Unichain will direct a portion of its sequencer fees toward the same burn mechanism.
The proposal also outlines structural and governance updates, including a unified Labs–Foundation model, fee-discount auctions, and new aggregator features in Uniswap v4 aimed at expanding protocol revenue sources.
Analyst estimates $38M in monthly UNI buybacks under new fee model
Crypto analyst @bread_ estimated the potential impact of this fee structure using historical Uniswap data. Based on roughly $2.8 billion in annualized trading fees, the 0.05% protocol share could generate about $38 million every 30 days for UNI buybacks.
According to him, this volume would position UNI ahead of PUMP ($35M monthly) and behind HYPE ($95M monthly) — two of the leading tokens currently driving price appreciation through their buyback models.
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