Uniswap Launches UNIfication to Overhaul Governance Model: Report

Uniswap Labs with the Uniswap Foundation have proposed a new proposal, UNIfication. It aims to reshape the decentralized exchange’s structure and future direction. The plan focuses on governance reform, token burns, and merging core teams under a unified growth strategy.

The UniSwap proposal appeared in a blog post dated November 11. It followed a short accidental release on November 10. The plan represents a significant change to how the platform operates and incentivizes activity across its ecosystem.

UNIficationApp aims to turn the platform into the primary exchange for tokenized assets. It would turn on protocol fees and route some trading revenues to a UNI burn system. Fees generated by company Layer-2 network, Unichain, would also fall into this burn process.

Uniswap Plans 100M UNI Burn and Structural Overhaul

The team suggested that 100 million UNI tokens could be burned retroactively from the treasury. The number depicts what could have been burned if protocol fees existed since platform launched. The move is an effort to align token supply with rewarding long-term holders.

By letting traders bid for lower fees, it aims to introduce a new system called Protocol Fee Discount Auctions. It would capture the maximum possible extractable value and add to more token burns. Uniswap v4 would also become an on-chain aggregator and collect fees from external liquidity sources through new hooks.

Uniswap Labs will join forces with the foundation on operations. A board of five members, that such includes Hayden Adams, Devin Walsh, Ken Ng, Callil Capuozzo and Hart Lambur would lead the new structure.

The team would overhaul its business model entirely. It will also cease monetizing its primary products — the interface, wallet and API. All listing fees associated with the product will be zero. Future monetization will be directly aligned with the interests of UNI token holders.

The proposal brings in permanency into the growth funding model. From 2026, thefirm governance would allocate a 20 million UNI yearly budget. The tokens continued to be given out on a quarterly basis to enable development and grow the ecosystem.

UNIfication represents the most significant overhaul since launching UNI in 2020. It is a package of financial reform with reorganization. The approach aims to simplify governance and support firms’s long-term stability.

The proposal, if approved by the DAO would set a new precedent for decentralized decision making. This places the company on the path of becoming a single protocol powered by openness, effectiveness, and mutual benefits for all parties involved.