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Uniswap Unveils “UNIfication” — Turns On Protocol Fees, Burns UNI, and Reshapes Governance

Tue Nov 11 2025

Uniswap launches “UNIfication,” a joint governance proposal activating protocol fees, burning UNI, and merging the Foundation with Uniswap Labs to strengthen DeFi’s leading DEX. Full details on the Uniswap Foundation blog and official X account

🚨 Uniswap Launches “UNIfication” — Governance Shake-Up Turns on Fees and Burns UNI

Three years after its foundation, Uniswap merges brains and budgets to become DeFi’s default DEX.

Uniswap just flipped a major switch. Three years after launching the Uniswap Foundation, the team is rolling out “UNIfication” — a joint governance proposal that activates protocol fees, burns UNI, and unites contributors under one mission: make Uniswap the world’s go-to DEX for tokenized value.

“Uniswap Labs and the Uniswap Foundation are excited to make a joint governance proposal that turns on protocol fees and aligns incentives across the Uniswap ecosystem, positioning the Uniswap protocol to win,” said Hayden Adams, Founder of Uniswap Labs.

The full announcement is live on the official Uniswap Foundation X account and detailed in their UNIfication blog post.

🔎 Quick Facts

🏗️ Proposal name: UNIfication
📅 Foundation launched: August 2022
💰 Grants distributed: $40M+ to 180+ teams across 60 countries
⚙️ Hook volume since v4 launch: $9.4B+
🌍 Unichain DEX volume: $70B+
🔥 UNI price jumped +38% post-announcement

🧱 From Grants to Governance: How Uniswap Grew Up

The Uniswap Foundation launched in 2022 to support DeFi’s chaotic growth, helping developers navigate governance and build infrastructure while regulators circled the space. Since then, it has funded over $40 million in grants — empowering more than 180 Unichain teams and 1,500+ hook developers from 60+ countries.

Programs like the Uniswap Hook Incubator and Hook Design Lab have produced 20,000+ hook initializations and $9.4B in hook volume since v4’s launch. Incentive programs also helped Unichain reach $70B+ in DEX volume, while v4 surpassed $230B cumulative volume.

Research grants, fellowships, and the TLDR DeFi conference advanced innovation in AMM design, MEV mitigation, and restaking — pushing the boundaries of decentralized finance. Governance tools like DUNA and GovSwap strengthened delegate coordination, and the Uniswap Foundation Security Fund helped 20+ teams secure audits.

💡 What UNIfication Changes

The UNIfication proposal marks a pivotal shift for Uniswap’s structure and governance. It introduces:

💸 Activation of protocol-level fee mechanisms.
🔥 Reduction of total UNI supply through burn mechanisms.
🧩 Alignment of Uniswap Labs interface and API to support protocol growth.
💼 Creation of a Uniswap Growth Budget to fund future ecosystem development.

Most of the Uniswap Foundation team and initiatives will transition to Uniswap Labs, while a smaller Foundation team will continue managing grants. The remaining $100M grants budget will be deployed before the Foundation winds down operations.

The mission stays the same: supporting builders, growing the protocol, and strengthening DeFi governance.

⚙️ The Fee Switch and Market Shockwave

On November 9, 2025, Uniswap activated its protocol fee switch on the Base chain — targeting fraudulent pools and impacting nearly $208.07B in volume. Of that, about $130.69B was identified as potentially fraudulent.

The change aligns UNI burn mechanisms with governance incentives, combining scarcity with accountability. Markets reacted fast — UNI jumped 38% within days.

The Growth Budget and fresh UNI burns have further boosted confidence among investors and developers, reinforcing Uniswap’s reputation for adaptive governance.

“The protocol’s adjustments indicate a stronger foundation for responsible trading within the ecosystem,” said Devin Walsh, Uniswap Foundation.

🧭 The Bigger Picture

UNIfication isn’t just a protocol upgrade — it’s a statement: DeFi’s biggest brand is maturing. By fusing innovation, governance, and community, Uniswap is setting itself up to dominate the next phase of decentralized finance — one where liquidity is tokenized, fees are active, and governance is real.