Uniswap Token Explodes 44%: New Burning Mechanism Proposed!

Uniswap Token Explodes 44%: New Burning Mechanism Proposed!

The native token of the decentralized crypto exchange Uniswap (UNI) recorded a dramatic increase of 44% in just 24 hours today, 11/11/2025. This jump follows the new governance proposal presented by the Uniswap Foundation. The proposal, titled “UNIfication,” aims to promote the growth of the protocol by introducing protocol fees and a token burning mechanism.

The proposal would see trading fees redirected to burn UNI tokens, creating deflationary pressures. This measure is intended to improve incentives for investors and users while supporting the long-term growth of the Uniswap ecosystem.

Governance proposal details

The proposal will introduce a “growth budget,” distributed on a quarterly basis starting next year, to fund the development of the protocol. A vote will take place among the members of the Decentralized Autonomous Organization (DAO) on the upcoming changes. This revision is the most significant since the UNI token was launched in 2020.

Additionally, a majority of Uniswap Foundation team members will move to Labs under a services agreement. A lean team will take over management of $100 million in remaining grants before the closure is implemented.

Market situation and current price

At the time of publication, the price of the UNI token is $9.55, reflecting the impact of the governance proposal and resulting investor interest. The rise in token prices suggests a positive market reaction, which many interpret as a sign of the stability and growth of the Uniswap protocol.

Given the adjustments and mechanisms introduced by the proposal, Uniswap could continue to play a pivotal role in the cryptocurrency landscape.

For more details on this topic and developments surrounding the Uniswap project, please visit Daily Hodl.