Uniswap Governance Proposal Hits Quorum as 40M UNI Votes Back Fee Switch

TLDR

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Uniswap’s UNIfication proposal crossed the 40M UNI quorum threshold.
Over 69M UNI tokens voted in favor, while opposition remained minimal.
The proposal includes protocol fee activation and a 100M UNI token burn.
Voting remains open, but quorum has already been satisfied.

Uniswap governance reached an important stage after a major proposal secured the required voting threshold. On-chain governance data confirmed that the Uniswap fee switch proposal crossed the 40 million UNI quorum. The proposal, referred to as UNIfication, gained strong backing from token holders early in the process. Support continued to grow as voting progressed, placing the proposal firmly on track for approval. The vote remains open, but the quorum requirement has already been satisfied.

Governance Vote Shows Broad Participation

The UNIfication proposal officially passed the minimum quorum required under Uniswap governance rules. More than 69 million UNI tokens were recorded in favor of the proposal at the time of reporting. Opposition remained minimal, with fewer than 1,000 UNI tokens voting against the measure. The voting period is scheduled to run until December 25.

Large holders played a central role in pushing the proposal over the threshold. Several wallet addresses submitted votes ranging from eight million to nearly fifteen million UNI each. Governance dashboards showed that supportive votes dominated from the opening hours. This early participation helped the proposal meet quorum well before the deadline.

UNISWAP FEE SWITCH PROPOSAL ON TRACK TO PASS WITH 62M VOTES CAST pic.twitter.com/1FrWMh97U6
— 0xMarioNawfal (@RoundtableSpace) December 22, 2025

Uniswap governance requires both quorum and majority support for approval. With quorum now met, attention has shifted to the remaining voting period. Any major change in outcome would require a sharp increase in opposing votes. At present, voting data continues to show strong alignment among token holders.

Fee Switch Activation and UNI Burn Structure

The proposal outlines the activation of Uniswap’s protocol fee switch. Once implemented, a portion of swap fees would be collected at the protocol level. For Uniswap v2 pools, liquidity provider fees would decrease from 0.30% to 0.25%. The remaining 0.05% would be allocated directly to the protocol.

For Uniswap v3 pools, protocol fees would differ based on pool configuration. These fees would remain adjustable through future governance decisions. All collected protocol fees would move into a dedicated on-chain contract. Withdrawals from this contract would only occur when UNI tokens are burned.

The proposal also includes a one-time burn of 100 million UNI tokens. These tokens would be sourced from the Uniswap treasury. The burn is intended to account for fees not collected during earlier growth periods. This approach links protocol activity with a reduction in circulating token supply.

Unichain Revenue and MEV Capture Mechanisms

The fee and burn framework extends beyond swap activity. Unichain sequencer fees would also contribute to the UNI burn process. Operational costs and Optimism’s share would be settled before any burn occurs. Remaining fees would then be sent to the same burn contract.

The proposal introduces a new system to capture MEV value. Traders would be able to bid for temporary reductions in protocol fees. Winning bids would result in UNI tokens being burned. This system aims to redirect value that would otherwise leave the protocol.

All mechanisms would operate through transparent on-chain processes. Governance would retain control over future adjustments. The structure seeks to align incentives among traders and liquidity providers. Token holders would also remain connected to protocol revenue flows.

Operational Changes Linked to Proposal Approval

If approved, the proposal outlines operational changes across the Uniswap ecosystem. Uniswap Labs would focus entirely on protocol growth and maintenance. Interface, wallet, and API fees would be reduced to zero. This shift separates protocol development from front-end revenue models.

Development teams from the Uniswap Foundation would move under Labs. Governance authority would continue to rest with UNI token holders. The proposal also establishes an annual development budget of 20 million UNI. This budget would support growth initiatives beginning in 2026.

With quorum achieved, the proposal now awaits the end of the voting period. Governance data will continue updating until voting concludes. The final outcome depends on participation during the remaining days.