Uniswap has activated its long-anticipated fee switch, transforming the UNI token from a governance-only asset into a value-generating one. This change links UNI tokens directly to protocol usage through a token supply burn mechanism. The protocol's annualized fees are estimated at $26 million, with around 4 million UNI tokens expected to be burned annually, aligning token holders more closely with Uniswap's economic system. The "UNIfication" proposal, passed by Uniswap governance, introduces a programmatic link between protocol usage and token supply, marking a significant shift in DeFi token economics. This move aims to address the disconnect between strong protocols and weak tokens by providing token holders with a direct stake in the protocol's cash flows. The activation of the fee switch is expected to reshape the valuation logic of DeFi tokens, focusing on the efficiency of converting protocol usage into lasting value for token holders.