Uniswap DAO has approved a 'fee switch' mechanism as part of its 'UNIfication' proposal, aiming to burn 100 million UNI tokens valued at approximately $600 million. The mechanism redirects protocol revenue to a 'token pot' rather than distributing it directly to UNI holders. Token holders can burn UNI through the 'pit' contract to claim assets from the pot, a strategy designed to reduce token supply and potentially increase value.
The fee switch will apply to v2 and v3 pools, with a new protocol fee discount auction planned to support liquidity providers. This initiative is part of Uniswap's broader strategy to enhance token utility and align with its long-term goals for token launches.
Uniswap DAO Approves Fee Switch to Burn $600M in UNI Tokens
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