#fee_switch
fee_switch
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After waiting five years, Uniswap finally opened its wallet.
$UNI saw a 17% pump in 24 hours today, with a trading volume of $520 million. The reason is simple—founder Hayden Adams dropped the "UNIfication" proposal, which centers around activating the fee switch.
Uniswap generates a massive amount of fees daily, previously all going to LPs, with the protocol taking none. Now, they're planning to pull out 1/4 to 1/6 of that, allowing $UNI holders to burn their tokens for equivalent assets. What's even crazier is the retroactive burn of 100 million $UNI , approximately $800 million.
Why is this important? Since $UNI 's launch in 2020, it’s been criticized for having "no value capture." As the largest DEX on Ethereum, with a monthly trading volume of $150 billion and monthly fees of $229 million, holders didn’t see a dime. It’s like running the hottest restaurant in town, where equity can vote but not distribute dividends.
Now the logic has flipped: The more usage there is → the more fees generated → the more burned → the less in circulation. Transitioning from "governance token" to "deflationary asset."
There’s another signal: The Uniswap Foundation is shutting down, consolidating power to Labs. Hayden mentioned that for the past five years, governance tied his hands, and "today it ends."
Should you chase it? On the day of the news, it already jumped 29%. But with $22.9 million in monthly fees, even if they burn 20%, that’s an annualized buy pressure of $550 million, and a revaluation might just be starting.
Risks: The proposal has a time lock, and if LP earnings get squeezed, there could be an exodus. Centralized power in Labs with no checks and balances.
This is the biggest fundamental shift for $UNI in five years, truly changing the flow of money. #Uniswap #UNI #fee_switch #DeFi #Ethereum
$UNI saw a 17% pump in 24 hours today, with a trading volume of $520 million. The reason is simple—founder Hayden Adams dropped the "UNIfication" proposal, which centers around activating the fee switch.
Uniswap generates a massive amount of fees daily, previously all going to LPs, with the protocol taking none. Now, they're planning to pull out 1/4 to 1/6 of that, allowing $UNI holders to burn their tokens for equivalent assets. What's even crazier is the retroactive burn of 100 million $UNI , approximately $800 million.
Why is this important? Since $UNI 's launch in 2020, it’s been criticized for having "no value capture." As the largest DEX on Ethereum, with a monthly trading volume of $150 billion and monthly fees of $229 million, holders didn’t see a dime. It’s like running the hottest restaurant in town, where equity can vote but not distribute dividends.
Now the logic has flipped: The more usage there is → the more fees generated → the more burned → the less in circulation. Transitioning from "governance token" to "deflationary asset."
There’s another signal: The Uniswap Foundation is shutting down, consolidating power to Labs. Hayden mentioned that for the past five years, governance tied his hands, and "today it ends."
Should you chase it? On the day of the news, it already jumped 29%. But with $22.9 million in monthly fees, even if they burn 20%, that’s an annualized buy pressure of $550 million, and a revaluation might just be starting.
Risks: The proposal has a time lock, and if LP earnings get squeezed, there could be an exodus. Centralized power in Labs with no checks and balances.
This is the biggest fundamental shift for $UNI in five years, truly changing the flow of money. #Uniswap #UNI #fee_switch #DeFi #Ethereum
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