UNI Surges 70% as UNIfication Proposal Sparks Market Frenzy

The cryptocurrency market has witnessed an extraordinary surge in Uniswap’s UNI token, with prices climbing over 70% in just seven days following the joint announcement from Uniswap Labs and the Uniswap Foundation. The UNIfication governance proposal represents a fundamental restructuring of the decentralized exchange’s ecosystem, introducing protocol fee activation for the first time since the protocol’s inception. This development has propelled UNI to briefly approach the $10 mark, a price level not observed since September, demonstrating the market’s enthusiastic reception of the proposed changes.

Market analytics platform Santiment confirmed that retail interest in UNI has intensified significantly during this period, with data showing the creation of the largest number of new UNI wallets in three years. Simultaneously, whale activity reached a four-year high in daily transactions, indicating substantial institutional and large-scale investor participation. CryptoQuant data further revealed that Spot Average Order Sizes have risen sharply following the news, with large whale orders suggesting early institutional accumulation patterns emerging in the market.

The UNIfication proposal introduces a comprehensive overhaul of Uniswap’s value structure, centered around a massive token burn of 100 million UNI tokens, representing approximately 16% of the circulating supply. This deflationary mechanism aims to align protocol incentives while consolidating the two driving ecosystem organizations—Uniswap Labs and the Uniswap Foundation—into a single, unified structure focused on steady growth and innovation. The restructuring represents the most significant evolution in Uniswap’s governance and economics since UNI’s initial launch.

Under the new model, fees generated by both the protocol and Unichain layer will flow directly into a UNI burn mechanism, effectively turning ongoing platform usage into lasting value for UNI holders. The proposal also calls for Uniswap Labs to cease charging fees on its wallet and interface products, redirecting all future monetization efforts toward protocol-level adoption. Meanwhile, the Foundation’s staff and ongoing operations will transition to Labs, creating a more streamlined organizational structure.

Adding to the long-term growth strategy, the proposal establishes a substantial growth budget of 20 million UNI annually, scheduled to begin distribution in 2026. This funding will support ecosystem development and ensure community-driven expansion, providing sustained resources for innovation within the Uniswap ecosystem.

The transformation outlined in the UNIfication proposal fundamentally changes the value proposition for UNI token holders. As CryptoQuant analysts noted, “In essence, Uniswap is evolving from a simple exchange into an integrated revenue engine for DeFi – one where holding UNI itself represents a claim on a growing ecosystem’s value.” This shift positions UNI not merely as a governance token but as a direct beneficiary of the protocol’s economic activity.

The combination of protocol fee activation, substantial token burns, and organizational consolidation creates a powerful value accrual mechanism for UNI holders. The deflationary pressure from burning 100 million tokens, coupled with the redirection of all fees toward protocol-level value creation, establishes a new economic model where token appreciation becomes intrinsically linked to platform usage and growth.

The market’s explosive response to these proposed changes underscores the cryptocurrency community’s recognition of Uniswap’s evolution toward a more sustainable and value-driven model. With whale activity at four-year highs and institutional accumulation patterns emerging, the UNIfication proposal has successfully captured both retail and sophisticated investor attention, potentially setting a new standard for DeFi protocol economics and governance structures.