- Uniswap treasury burned 100M UNI tokens, affecting supply.
- UNI price increased post-burn due to reduced supply.
- Market capitalization impacted with significant trading volume rise.
Uniswap’s treasury burned 100 million UNI tokens on December 28, 2025, at approximately 4:30 a.m. UTC, reducing the circulating supply significantly.
The burn, approved under UNIfication governance, prompted a swift 5–8% price surge, highlighting UNI’s potential as a deflationary asset and boosting market interest.
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The Uniswap treasury has burned 100 million UNI tokens, valued at approximately $591–$635 million. This action follows approval of the UNIfication governance proposal at 4:30 a.m. UTC on December 28, 2025. You can read more about it on Uniswap’s official Twitter.
Uniswap Labs and the Uniswap Foundation orchestrated the token burn from a multisig wallet, validated on Etherscan. Tokens are irreversibly sent to a dead address to reduce circulating supply.
Immediate market reactions included a UNI price surge by 5–8%, with trading volumes spiking up to 250%. The token’s scarcity increased due to the burn, impacting its market capitalization, which was reported around $4.56 billion.
The burn decreases the treasury’s UNI holdings from over 600 million to between 269–376 million, affecting the future protocol fee structure. Potential annual fee redirection may amount to $400 million for further buybacks and burns.
Hayden Adams, Founder and Chair, Uniswap Foundation, commented on Twitter, “Burns are table stakes; real alpha is in protocol-owned liquidity.” – source
Historical comparisons are drawn with Binance BNB burns, framing the event as unprecedented in Uniswap’s history with governance backing. Community support shows varied responses, highlighting the balancing act between deflation and operational costs.
Potential outcomes include elevated UNI value capture, impacting governance token perception. Regulatory concerns minimal, yet DEX scrutiny remains significant. This decision aligns with a broader roadmap emphasizing technology enhancements for Uniswap versions V3 and V4.
Messari Analysts stated, “This burn reframes UNI as a true value-capture asset.” – source
