Uniswap Could Go Parabolic With Fee Switch Activation, Says CryptoQuant CEO
Uniswap’s UNI token surged roughly 30% following Monday’s proposal announcement, with the crypto buying and selling above $8.70 as markets responded enthusiastically to the long-awaited charge swap activation plan.
CryptoQuant CEO Ki Young Ju predicted the token might expertise “parabolic” progress as soon as the mechanism goes dwell, estimating round $500 million in annual token burns based mostly on present buying and selling volumes.
The “UNIfication” proposal, collectively submitted by Uniswap Labs and the Uniswap Foundation, marks founder Hayden Adams’ first governance proposal within the protocol’s historical past.
The plan would redirect between one-quarter and one-sixth of protocol charges to a sensible contract referred to as the “token jar,” the place UNI holders might burn their tokens to withdraw an equal quantity of crypto.
Historic Proposal Ends Years-Long Debate
Adams revealed that Uniswap Labs has been unable to meaningfully take part in governance for 5 years, vastly restricted in constructing worth for the group as a result of a hostile regulatory surroundings that has value hundreds of hours and tens of tens of millions of {dollars} in authorized charges.
The proposal arrives as that regulatory local weather shifts following the departure of former SEC Chair Gary Gensler, with Hyden saying Gensler “actually sucked.”
For Uniswap v2 pools, liquidity supplier charges would drop from 0.3% to 0.25%, with 0.05% going to the protocol, whereas v3 swimming pools would see protocol charges set at one-fourth or one-sixth of LP charges, relying on the tier.
The activation would initially cowl Uniswap v2 and main v3 swimming pools on Ethereum mainnet, representing as much as 95% of liquidity supplier charges.
Beyond charge activation, the proposal consists of a direct retroactive burn of 100 million UNI tokens from the treasury, valued at roughly $800 million.
All Unichain sequencer charges, after overlaying Layer 1 knowledge prices and the 15% allocation to Optimism, would additionally move into the burn mechanism.
Today, I’m extremely excited to make my first proposal to Uniswap governance on behalf of @Uniswap alongside @devinawalsh and @nkennethk
This proposal activates protocol charges and aligns incentives throughout the Uniswap ecosystem
Uniswap has been my ardour and singular focus for… pic.twitter.com/Ee9bKDric5
— Hayden Adams
(@haydenzadams) November 10, 2025
Structural Changes and Growth Strategy
The UNIfication plan essentially restructures Uniswap’s organizational framework.
The proposal seeks to disband the Uniswap Foundation, shifting most employees to Uniswap Labs, whereas remaining Foundation workers would administer the nonprofit’s $100 million grants program earlier than the group folds.
Uniswap Labs would pivot away from monetizing its merchandise, setting interface, pockets, and API charges to zero to reinforce competitiveness.
The Uniswap Ethereum frontend has earned a cumulative $137 million to this point, together with $48 million in 2025 alone.
The proposal additionally establishes an annual progress price range of 20 million UNI tokens beginning January 2026, distributed quarterly to fund protocol improvement.
The plan introduces Protocol Fee Discount Auctions, which might public sale fee-free buying and selling rights for brief intervals, internalizing MEV that sometimes flows to validators.
Aggregator hooks would rework Uniswap v4 into an on-chain aggregator that collects protocol charges from exterior liquidity sources.
Notably, Curve Finance founder Michael Egorov suggested Uniswap selected an “inferior mechanism” in comparison with Curve’s veLocks mannequin, pointing to analysis exhibiting vote-escrow programs lock roughly 3 times extra tokens than burn mechanisms would take away.
However, the broader DeFi group expressed sturdy help for UNIfication’s worth alignment strategy.
Industry Splits Over Fee Switch Impact
Industry analysts responded positively to the proposal’s complete scope. A16z CTO Eddy Lazzarin highlighted how the plan creates a “closed loop” community token the place protocol charges return worth to token holders.
“Plenty of authorized work went into making this potential — the DUNI and a whole lot of analysis,” he stated.
Delphi Labs contributor RedPhone additionally declared that Hyden has now taken “DeFi mainstream” and “made token worth accrual non-negotiable.”
“The line is drawn: your token both accrues worth or it’s lifeless,” he added.
However, some analysts raised issues about potential market distortions.
A Dune analyst estimated that roughly half of current Uniswap quantity on Base consists of scammy swimming pools that depend on zero protocol charges.
“Half of Base quantity on Uniswap will vanish in a single day as soon as the charge swap goes dwell. Anyone operating evaluation about income charges and burn charges for UNI shall be off if they’re wanting simply at unfiltered prime line values,” the analyst famous.
So, one factor a charge swap will do is make scammy swimming pools (honeypots, automated rugs, and so forth.) vanish in a single day. These depend on the protocol take price being precisely 0.
By my tough estimation, half of current Uniswap quantity on Base falls into this camp.
Uniswap’s official Dune tracker… https://t.co/M0Wg4eVJEX pic.twitter.com/Jmh2A9Z3h5
— jpn memelord
(@jpn_memelord) November 11, 2025
Similarly, Stable Lab’s Doo Wan additionally cautioned about fiscal self-discipline because the DAO transitions from treasury depletion to potential replenishment.
“We now have a extra aligned DAO that’s transitioning from a part of treasury depletion to at least one which will ‘probably’ start replenishing the treasury. The key phrase right here is probably,” Wan wrote.
He suggested that “delegates should due to this fact stay vigilant and proceed to overview proposals fastidiously.“
The publish Uniswap Could Go Parabolic With Fee Switch Activation, Says CryptoQuant CEO appeared first on Cryptonews.
