Uniswap Founder Submits Governance Proposal To Burn UNI — Token Jumps 50%

Overview

Uniswap is making waves in the decentralized finance (DeFi) sector as its founder, Hayden Adams, has submitted a significant governance proposal aimed at activating protocol fees and aligning incentives within the Uniswap ecosystem. This announcement led to a surge in UNI’s price, reflecting a renewed sense of optimism among investors.

What Happened

Hayden Adams, founder and CEO of Uniswap Labs, revealed a governance proposal intended to overhaul the operational framework of the Uniswap protocol. The proposal aims to activate protocol fees that would be directed towards burning UNI tokens, thereby creating a sustainable mechanism for value accrual within the ecosystem. Additionally, Adams outlined plans to send Unichain sequencer fees to the UNI burn, further reducing the token’s supply, and to burn 100 million UNI from the treasury, representing fees that could have been burned since the protocol’s launch.

Moreover, the proposal introduces Protocol Fee Discount Auctions, which are designed to enhance the outcomes for liquidity providers (LPs) and capture miner extractable value (MEV) directly for the protocol. Another key feature is the introduction of “aggregator hooks” for Uniswap v4, enabling it to become an on-chain aggregator that can collect fees from external liquidity sources, potentially broadening Uniswap’s influence in the DeFi space.

Adams also proposed a redefined role for Uniswap Labs, focusing exclusively on protocol growth and governance-aligned initiatives while discontinuing fee collection on its interface, wallet, and API. This change is aimed at promoting wider adoption of the protocol. Furthermore, the proposal suggests merging Foundation employees into Labs under a new growth fund and transitioning governance-owned Unisocks liquidity to v4 on Unichain, where it would be burned.

Despite the positive reaction from the market, some analysts view this proposal as a response to increasing competition from rivals like Aerodrome Finance, which has been expanding its ecosystem and drawing liquidity away from Uniswap.

Impact on the crypto market

• The governance proposal has sparked renewed investor confidence, leading to a significant price increase for UNI.
• The activation of protocol fees could create a sustainable value mechanism, impacting future token supply dynamics.
• The introduction of new features like Protocol Fee Discount Auctions may enhance liquidity provider outcomes and improve overall market efficiency.
• Uniswap’s strategic pivot could help it regain dominance in the rapidly evolving DeFi landscape.
• The proposal’s reception will be closely monitored, as community approval is crucial for its implementation and future market trajectory.

Updated: 11/11/2025, 9:00:20 PM