- UNI traded near $5.90 as voters approved protocol fees and a large retroactive token burn.
- Uniswap’s fee switch ties trading volume to UNI supply cuts via an on-chain burn model.
- UNI price consolidated below $6.00 while futures open interest held above $377 million.
UNI traded near $5.90–$5.92 on Dec. 26 after a 2.5% rise in the past 24 hours, as Uniswap voters backed a protocol fee switch and a large UNI token burn. The UNIfication proposal passed with more than 125 million votes in favor and 742 against, setting up a plan to route part of protocol revenues into an on-chain burn mechanism.
UNI Price Trades Near $5.90 After a One-Week Rally
UNI gained 13.84% over the past week, while the price swung between clear weekly extremes. The token printed a weekly low near $5.2009 on Dec. 20 and reached a peak around $6.25 on Dec. 21. After that push, the price cooled and moved into a tighter band near the $6 handle.
However, the recent structure shows consolidation rather than a straight continuation move. Price held a base in the $5.75–$5.80 area during Dec. 24–26, while sellers defended overhead levels. As a result, UNI has traded below the prior $6.20–$6.25 rejection zone.
Intraday action on Dec. 26 kept the same range tone. UNI posted an intraday high near $6.00–$6.02 and an intraday low near $5.74–$5.76, then rebounded toward $5.91. Moreover, price repeatedly stalled near $6.00, which kept that level in focus as near-term resistance.
Derivatives activity has remained active during the current range. UNI futures open interest stood at $377.62 million on Dec. 25, while UNI traded near $5.80 in the same period. Earlier cycles saw open interest climb into the $600–$800 million range, so the market has cooled from peak leverage.
Price action also leaves clear technical markers for the next move. A sustained push above $6.00 would place $6.10 and the prior $6.25 high back on the radar. Conversely, a move under $5.88–$5.90 would turn focus toward $5.80, with $5.75 as the next line that traders often track.
UNIfication Vote Backs the Fee Switch and UNI Token Burn
Uniswap Labs and the Uniswap Foundation advanced the UNIfication proposal after a decisive governance vote. Uniswap founder Hayden Adams announced that the vote closed with 99.9% approval. The proposal aims to turn UNI from a governance-only token into an asset tied to protocol economics through fees and supply reduction.
The measure activates the “fee switch,” which redirects a portion of trading fees to the protocol. Until now, Uniswap routed fees to liquidity providers, while UNI holders received governance rights only. Under the new framework, the protocol sends part of the fee stream to an on-chain mechanism designed to burn UNI.
Additionally, the plan adds revenue from the Unichain sequencer to the burn flow after deducting L1 costs and Optimism allocations. The proposal also enters a two-day waiting period before execution steps begin. After that window, Uniswap plans to burn 100 million UNI from the treasury, worth over $590 million at current prices.
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Uniswap Fees, Daily Volume, and Supply Reduction Mechanics
Uniswap averages about $2 billion in daily trading volume and generates roughly $600 million in annualized fees, according to DeFiLlama data. That scale has kept Uniswap at the top of decentralized exchange activity. At the same time, UNI’s value link to those fees remained indirect before the fee switch.
Consequently, the new structure connects usage and fee generation to UNI supply changes. Higher protocol activity can increase the amount routed into the burn mechanism, while the circulating supply falls as burns occur. The proposal frames that link as a core feature of the updated token design.
The package also reorganizes operations around Uniswap Labs. The plan moves Uniswap Foundation responsibilities to Uniswap Labs and ends interface fees. It also sets an annual development budget for wallets and API services funded by UNI tokens.
