Yeliz Akmaca 
Uniswap is preparing a major protocol update this week after its “UNIfication” fee switch proposal surpassed the 40 million vote threshold. Voting ends on December 25, and if successful, significant changes to UNI token supply are expected.
UNIfication Protocol Update
Uniswap will activate its new fee switch system on both v2 and v3, triggering token burns. The Uniswap Foundation will burn 100 million UNI tokens under the proposal. Additionally, the protocol will launch a Protocol Fee Discount Auctions system to increase liquidity provider returns.
Uniswap Labs CEO Hayden Adams commented on the vote:
“We have submitted the Unification proposal for final governance vote. Voting starts on 12/19 at 10:30pm EST and ends on 12/25. If it passes, after a 2-day timelock period, 100 million UNI will be burned and v2 + v3 fee switches will go live on mainnet.”
UNI Token Supply and Demand Dynamics
The UNIfication update is expected to strengthen UNI token supply-demand dynamics, making it more attractive to hold long-term. Since the start of voting, UNI has gained around 25%, trading at $6.08. When the proposal was first announced in November, UNI surged from $7 to $9.70.
Community Support and Key Votes
The UNIfication proposal has received backing from major crypto figures, including Jesse Waldren, founder of Variant; Kain Warwick, founder of Infinex and Synthetix; and former Uniswap Labs engineer Ian Lapham. So far, only 741 votes have opposed the proposal, while 1.5 million votes abstained.
Development and Growth Plans
The Uniswap Foundation confirmed that protocol development support will continue alongside UNIfication. A new Growth Budget is planned, with 20 million UNI tokens allocated to developers and projects.
Why It Matters
This fee switch and token burn mechanism mark one of the biggest protocol upgrades in Uniswap’s seven-year history, potentially increasing UNI’s long-term value and liquidity.
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