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Crypto

Uniswap Fee Switch Burns $23M in UNI Tokens Amid DeFi Deflation

Guavy AI Editorial Team
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UNI
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Uniswap has introduced a new mechanism to redirect a portion of swap fees towards buying and burning UNI tokens, generating $23 million in protocol revenue since its activation in December 2025.

This move transforms UNI from a governance token into a deflationary asset tied to real revenue, prompting other DeFi protocols to consider similar mechanisms.

The fee switch has expanded to seven networks and is estimated by Ark Invest to burn $90 million in annualized tokens.

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