Original author: Sanqing, Foresight News

On November 11, decentralized exchange Uniswap Labs and the Uniswap Foundation jointly released the "UNInitiation Proposal," which plans to implement a protocol fee mechanism, token burning, and integrate the core team's governance structure. Following the announcement, the UNI token surged by over 50%, breaking through $10 and reaching a market capitalization of over $6 billion.

Core of the proposal: Protocol revenue, token burning, and unified governance.

According to official documents, UNInformation aims to achieve ecosystem incentive consistency by "driving UNI value through protocol usage," with specific measures including:

Activate the agreement fee mechanism

Uniswap will officially launch protocol-level fee distribution, with a portion of transaction fees being directed to UNI burning pools to reduce the circulating supply of tokens. This will be implemented first in v2 and v3 pools, and then extended to L2 and future versions.

Benefits of integrating Unichain

Since its launch nine months ago, Unichain has generated approximately $7.5 million in annualized transaction fees, all of which will flow into the same burning mechanism in the future.

100 million UNI tokens were retroactively destroyed.

One hundred million tokens from the treasury (approximately 16% of the circulating supply) will be burned directly to simulate the amount that would be burned if the fee mechanism were enabled starting in 2020.

Introducing the PFDA (Protocol Fee Discount Auctions) system

Users can obtain "no-deal-fee trading" privileges through auctions, with the proceeds going into the burning pool. This mechanism will also help the protocol internalize MEV revenue and improve LP yields.

Aggregator Hooks and Protocol Extensions

Uniswap v4 will be upgraded to an on-chain aggregator, collecting fees from external liquidity sources and executing token burning logic, further expanding the scope of protocol revenue.

Governance Structure Integration

Uniswap Labs will absorb the Foundation's ecosystem team to form a unified growth strategy. The board of directors will expand to five members, including Hayden Adams, Devin Walsh, Ken Ng, Callil Capuozzo, and Hart Lambur.

Annual growth budget

Starting in 2026, governance will allocate 20 million UNI annually for developer funding, protocol growth, and ecosystem incentives.

Official statement: Uniswap enters the "next era"

Uniswap founder Hayden Adams stated, "We've gone through a tough regulatory cycle and paid a heavy price over the past few years, but the environment is starting to improve. UNIfication marks a new phase for Uniswap, realigning the token, protocol, and community."

In a statement, the Foundation said, "We believe this move will make Uniswap the default decentralized trading platform for tokenized value globally."

Market reaction: UNI regains attention

As of writing, stimulated by the proposal, UNI has surged over 50% in 24 hours, breaking through $10 and reaching a market capitalization of over $6 billion, returning to the top 30 crypto assets. The combination of the protocol fee mechanism and the burning mechanism introduces a clear cash flow and scarcity logic to UNI.

Uniswap has accumulated over $4 trillion in trading volume, consistently ranking as the world's largest decentralized exchange. This governance reform will solidify its dominant position in the ecosystem and set a new standard for the "value capture model" in the entire DeFi market.

Conclusion

Since its inception in 2018, Uniswap has been a core driver of DeFi structural innovation. This "UNInvention" proposal not only signifies the unification of its business and governance models, but also marks the beginning of DeFi protocols moving from "public infrastructure" to "sustainable economies."