Uniswap
UNIUSD just made one of its biggest changes in years. The new Unification plan gives the UNI token a real way to capture value. This matters because traders spent a long time saying UNI was only good for voting. Now it gets a direct connection to the protocol’s revenue.
The first move is the burn of 100 million UNI. That is about ten percent of the whole supply. It shows the team wants to give something back to holders instead of letting that value sit unused. This burn comes from what Uniswap would have earned if the fee switch was active from day one.
The next step is the fee switch. Before this, liquidity providers took all trading fees. Now a small part will go to the protocol. The protocol will use those fees to buy and burn UNI. So the token becomes deflationary. And the buybacks grow when trading volume grows. It works like a basic business model where more activity means more revenue.
The third change is the merger between Uniswap Labs and the Uniswap Foundation. They will run under one board with five members. This keeps things simple and cuts slow governance steps that blocked progress in the past. A clean structure helps the protocol move faster and plan long term.
There is also the PFDA system. It lets DAOs and traders bid for fee discounts. This helps pull MEV value away from bots and back into the protocol. That extra income also goes into the buy and burn engine. So the whole system becomes tighter and more efficient.
Uniswap V4 is coming next. It will act like a liquidity aggregator. It will take orders from other DEXs. So Uniswap can earn from flows outside of its own pools. This opens more income paths and strengthens the revenue model.
There is a risk here. Liquidity providers on V2 will earn a bit less. Fees drop from 0.3 percent to 0.25 percent. Some providers might leave for better rewards somewhere else. Volume can dip for a short time. But the PFDA model and MEV capture aim to balance that.
Wyoming’s DUNA law might allow DAOs to share revenue with token holders in the United States by August 2025.
If volume stays steady and the system burns even a small part of supply each year, the long-term effect can be strong. Uniswap shifts from a public good into a real business with a simple buyback cycle.
TheCryptoFire
The first move is the burn of 100 million UNI. That is about ten percent of the whole supply. It shows the team wants to give something back to holders instead of letting that value sit unused. This burn comes from what Uniswap would have earned if the fee switch was active from day one.
The next step is the fee switch. Before this, liquidity providers took all trading fees. Now a small part will go to the protocol. The protocol will use those fees to buy and burn UNI. So the token becomes deflationary. And the buybacks grow when trading volume grows. It works like a basic business model where more activity means more revenue.
The third change is the merger between Uniswap Labs and the Uniswap Foundation. They will run under one board with five members. This keeps things simple and cuts slow governance steps that blocked progress in the past. A clean structure helps the protocol move faster and plan long term.
There is also the PFDA system. It lets DAOs and traders bid for fee discounts. This helps pull MEV value away from bots and back into the protocol. That extra income also goes into the buy and burn engine. So the whole system becomes tighter and more efficient.
Uniswap V4 is coming next. It will act like a liquidity aggregator. It will take orders from other DEXs. So Uniswap can earn from flows outside of its own pools. This opens more income paths and strengthens the revenue model.
There is a risk here. Liquidity providers on V2 will earn a bit less. Fees drop from 0.3 percent to 0.25 percent. Some providers might leave for better rewards somewhere else. Volume can dip for a short time. But the PFDA model and MEV capture aim to balance that.
Wyoming’s DUNA law might allow DAOs to share revenue with token holders in the United States by August 2025.
If volume stays steady and the system burns even a small part of supply each year, the long-term effect can be strong. Uniswap shifts from a public good into a real business with a simple buyback cycle.
TheCryptoFire
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
