Uniswap's Fee Switch Burns $23M in UNI Tokens, Expands to Seven Networks

Uniswap's fee switch has been burning UNI tokens and redirecting swap fees to buy and burn more of the asset. This move, which began in December 2025, has generated $23 million in protocol revenue and expanded to seven networks.

According to Ark Invest, this mechanism is expected to burn around $90 million in UNI tokens annually. The fee switch transforms UNI from a governance token into a deflationary asset tied to real revenue, prompting other DeFi protocols to consider similar mechanisms.

The success of Uniswap's fee switch raises questions about the future value of governance tokens across DeFi and potential regulatory challenges ahead.