Uniswap’s UNI token jumped nearly 30% in a single day as investors reacted to a governance proposal that would activate protocol fees and burn tokens.
By Parth Dubey
Editor Julia Sakovich
Updated
2 mins read
Uniswap’s native token, UNI UNI $8.22 24h volatility: 19.4% Market cap: $5.18 B Vol. 24h: $3.55 B , surged nearly 30% in the past 24 hours. This allowed the decentralized exchange token to claim the 24th spot on CoinMarketCap, valued at $5.44 billion. Trading volumes exploded by over 500%, crossing $3 billion, as investors rushed to accumulate the token.
The rally follows growing anticipation surrounding a new governance proposal that could reshape Uniswap’s token economy and fee model.
Uniswap could go parabolic if the fee switch is activated.
Even just counting v2 and v3, with $1T in YTD volume, that’s about $500M in annual burns if volume holds.
Exchanges hold $830M, so even with unlocks, a supply shock seems inevitable. Correct me if I’m wrong. https://t.co/39QjJsw9uQ pic.twitter.com/3FQzAmuOP3
— Ki Young Ju (@ki_young_ju) November 11, 2025
CryptoQuant CEO Ki Young Ju said that Uniswap could enter a “parabolic” phase if its long-debated fee switch mechanism is activated. He added that Uniswap v2 and v3 alone have generated roughly $1 trillion in trading volume this year, which could translate to half a billion dollars in annual UNI burns if the new fee model is approved.
With $830 million in UNI currently sitting on centralized exchanges, Ju implied that the combination of token burns and limited supply could lead to a structural supply squeeze, potentially pushing prices higher, which can make UNI one of the best crypto to buy in 2025.
Uniswap Labs and the Uniswap Foundation jointly revealed a governance proposal known as “UNIfication.” The initiative aims to realign the ecosystem’s structure by activating protocol fees, introducing programmatic UNI burns, and redirecting Unichain sequencer fees into the burn mechanism.
The proposal includes an ambitious plan to merge the Foundation’s core functions with Uniswap Labs, consolidating leadership and focusing resources on expanding protocol adoption. Uniswap aims to evolve from a DEX into a full-fledged liquidity and infrastructure layer for tokenized value.
Among the key features are Protocol Fee Discount Auctions (PFDA), a mechanism designed to internalize MEV (Miner Extractable Value) and boost liquidity provider (LP) returns; and aggregator hooks in Uniswap v4, which will allow the platform to collect fees from external onchain liquidity sources.
The proposal also states a retroactive burn of 100 million UNI from the treasury, symbolically compensating for the years when protocol fees remained inactive since the token’s 2020 launch.
For years, the protocol operated without capturing fees, prioritizing growth and decentralization over direct tokenholder rewards. The new structure changes that dynamic entirely.
Also, the proposal talks about a 20 million UNI annual growth budget to fund development, builder programs, and partnerships, aiming to attract new institutional participants and expand Uniswap’s presence across emerging blockchain ecosystems.
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A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.
