Uniswap Fee Switch Activated: Deflationary Asset Tied to Real Protocol Revenue

The Uniswap fee switch was activated on December 28, 2025, after the UNIfication proposal passed with 99.9% support from governance token holders.

This change redirected a portion of swap fees into TokenJar contracts that buy and burn UNI tokens, effectively creating a deflationary asset tied to real protocol revenue.

The initial activation included an immediate burn of 100 million UNI tokens, which removed approximately $400 million in token supply at prevailing prices.

Eight months after the switch was activated, Uniswap's cumulative protocol revenue reached $23.15 million, with daily revenue increasing to $129,274 on Ethereum alone and $325,000 across seven networks.