Uniswap Labs, in collaboration with the Uniswap Foundation, has announced a new proposal aimed at reshaping the future of decentralized exchanges. Announced on November 11, the proposal, titled “Unification,” focuses on governance changes, token burn, and an integrated growth strategy to strengthen the platform. While the plan was initially released briefly and accidentally on November 10th, it now represents a pivotal change in the way Uniswap operates.
Central to the UNIfation plan is the introduction of a protocol fee to fund the UNI token burn system. A key part of this restructuring includes the retroactive burning of 100 million UNI tokens from the Treasury. This figure represents the amount that would have been spent if protocol fees had been in place since the platform’s launch. The goal is to reduce the total supply of UNI tokens, benefit long-term holders, and encourage participation in the network. The proposal also includes the implementation of a protocol fee discount auction, which will allow traders to bid for reduced fees, further increasing token burn.
Structural changes and collaboration with foundations
The proposed changes also suggest merging Uniswap Labs and the foundation’s core teams to create a unified operation. The new leadership structure will consist of a five-person board of directors, including key figures such as Hayden Adams, Devin Walsh and Ken Ng. This new structure is intended to streamline operations and increase overall efficiency as the platform advances. Additionally, Uniswap v4 will become an on-chain aggregator and collect fees from external liquidity sources through new hooks, creating an additional revenue stream.
Uniswap plans to completely overhaul its business model. The company plans to discontinue monetization of core products such as interfaces, wallets, and APIs. Listing fees will be abolished and future monetization will be focused on aligning the interests of UNI token holders. The company will allocate an annual budget of 20 million UNI for governance starting in 2026, distributed quarterly to support development and ecosystem growth. This new funding model aims to ensure the long-term sustainability of the decentralized platform.
Unification: A step towards simplifying governance
The UNIFication proposal represents the most significant reform since the launch of the UNI token in 2020. Uniswap wants to set a new precedent for decentralized decision-making by simplifying governance and aligning incentives for all stakeholders. If approved by the DAO, this proposal would pave the way for Uniswap to become a more efficient, transparent, and user-tailored protocol.