Yesterday’s content sparked a lot of interest among everyone.
Today, let’s continue and talk about which kind of burn is truly high-value.
As of today, $UNI has cumulatively burned 112 million coins, accounting for more than 11% of the initial supply.
I think this is high-value—not just because of the number burned, but because it has a continuous burn mechanism.
Just this year alone, UNI has burned 11.7 million coins through this setup.
After users trade on Uniswap, trading fees are generated.
These fees may be $ETH , $USDC, or other tokens.
All of these tokens are then consolidated into the fee treasury, TokenJar.
Then once the assets inside reach a sufficiently high level, arbitrage opportunities start to emerge outside.
For example, if TokenJar holds $101,000 $ETH , Uniswap’s burn smart contract only requires burning $100,000 worth of UNI.
Participants can buy UNI worth $100,000 to burn it, then withdraw the $ETH inside.
The participants profit by $1,000, while also burning $UNI .
As long as Uniswap continues to have trading volume, the more fees there are, the more UNI will be burned.
What’s more, the SEC has just given the green light to tokenized stocks, and UNI’s Permissioned Pool benefits from it as well.
Although this continuous burn mechanism is very beneficial for $UNI ,
we’ll still be strict about the numbers:
this year, there’s no minting of new coins, but roughly 15 million are being released.
Burned this year is about 11.7 million, while releases are about 15 million.
In terms of circulating supply, releases exceed burns by about 3.3 million coins, so potential circulating supply could still increase.
However, judging by this momentum,
by the end of the year, there’s a chance that burns could catch up to releases.
Let’s keep watching and see.
Today, let’s continue and talk about which kind of burn is truly high-value.
As of today, $UNI has cumulatively burned 112 million coins, accounting for more than 11% of the initial supply.
I think this is high-value—not just because of the number burned, but because it has a continuous burn mechanism.
Just this year alone, UNI has burned 11.7 million coins through this setup.
After users trade on Uniswap, trading fees are generated.
These fees may be $ETH , $USDC, or other tokens.
All of these tokens are then consolidated into the fee treasury, TokenJar.
Then once the assets inside reach a sufficiently high level, arbitrage opportunities start to emerge outside.
For example, if TokenJar holds $101,000 $ETH , Uniswap’s burn smart contract only requires burning $100,000 worth of UNI.
Participants can buy UNI worth $100,000 to burn it, then withdraw the $ETH inside.
The participants profit by $1,000, while also burning $UNI .
As long as Uniswap continues to have trading volume, the more fees there are, the more UNI will be burned.
What’s more, the SEC has just given the green light to tokenized stocks, and UNI’s Permissioned Pool benefits from it as well.
Although this continuous burn mechanism is very beneficial for $UNI ,
we’ll still be strict about the numbers:
this year, there’s no minting of new coins, but roughly 15 million are being released.
Burned this year is about 11.7 million, while releases are about 15 million.
In terms of circulating supply, releases exceed burns by about 3.3 million coins, so potential circulating supply could still increase.
However, judging by this momentum,
by the end of the year, there’s a chance that burns could catch up to releases.
Let’s keep watching and see.