The decentralized exchange protocol Uniswap (UNI) is preparing to take one of the most critical steps in governance history.
The merger proposal called “UNIfication,” voted on by the community, was overwhelmingly approved, and the decision included the burning of 100 million UNI tokens and the activation of the long-debated fee switch mechanism.
Although the voting process began on December 20th and will continue until Christmas Day, the proposal has already surpassed the required majority. According to the data, the proposal, supported by over 69 million UNI votes, easily exceeded the 40 million UNI threshold needed for approval. Opposing votes were negligible; only approximately 0.001% of the total votes were cast against the proposal, while around 1.5 million UNI abstained.
The acceptance of the UNIfication proposal is seen as a milestone for the Uniswap protocol. This step will establish a direct link between Uniswap’s transaction activities and the supply dynamics of the UNI token for the first time. Especially with the activation of the fee switch, the protocol’s revenues are expected to be more strongly integrated with the UNI ecosystem.
*This is not investment advice.