Uniswap Executes Historic 100M UNI Burn After Governance Approval

Decentralized finance (DeFi) continues to evolve with bold experiments in governance and tokenomics. On December 28, 2025, Uniswap Labs permanently removed 100 million UNI tokens from circulation, a move valued at approximately $550–596 million. This landmark decision was not unilateral but rather the result of near-unanimous community governance approval, demonstrating the strength of decentralized decision-making in shaping the future of DeFi.

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Governance and Community Support

• The proposal, dubbed “UNIfication”, was passed with over 99% support from UNI holders.
• More than 125 million UNI tokens voted in favor, compared to just 742 against.
• The swift transition from proposal to execution highlights the efficiency of Uniswap’s governance model.

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Details of the Burn

• 100 million UNI tokens were permanently destroyed at 4:30 a.m. UTC on December 28.
• The burn was executed on-chain, ensuring transparency and verifiability.
• Future protocol fees collected by Uniswap will continue to fund additional burns, after covering operational costs on Ethereum and Optimism networks.

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Economic Impact

• The burn introduces a deflationary mechanism into UNI’s tokenomics.
• By reducing supply, Uniswap strengthens UNI’s scarcity and potentially enhances long-term value.
• Analysts note this as one of the largest supply cuts ever seen in DeFi, positioning Uniswap as a pioneer in sustainable token economics.

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Market and Community Reactions

• The crypto community has largely celebrated the burn as a historic milestone.
• Many see it as a signal of maturity in DeFi governance, where token holders actively shape protocol economics.
• Market observers suggest that this move could inspire other DeFi projects to adopt similar deflationary strategies.

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Conclusion
The 100M UNI burn is more than just a reduction in supply—it represents a new chapter in decentralized governance and tokenomics. By aligning community consensus with protocol economics, Uniswap has reinforced its role as a leader in DeFi innovation. As future burns are expected, UNI holders and the broader crypto ecosystem will be watching closely to see how this deflationary model reshapes the market.