Imagine it’s the witching hour in the crypto underworld, 4:30 AM UTC on December 28, and Uniswap decides to light the biggest match in DeFi history.
Bam, 100 million UNI tokens, worth a cool $596 million, go up in smoke.
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Blockchain sleuth EmberCN spotted the blaze on Etherscan, confirming the tokens got shipped to a black hole address. No take-backs.
This is DeFi’s fattest token burn ever, slashing supply like a deranged editor hacking a bloated manuscript.
The votes turned UNI fee whispers into a deflation roar
The madness kicked off with “UNIfication,” a governance proposal that sailed through with 99.9% approval. 125 million UNI yelling “yes,” a measly 742 grumbling “nay.”
UNIfication has officially been executed onchain
✓ Labs interface fees are set to zero
✓ 100M UNI has been burned from the treasury
✓ Fees are on for v2 and a set of v3 pools on mainnet
✓ Unichain fees flow to UNI burn (after OP & L1 data costs)
Let the burn begin pic.twitter.com/fcr3WY3gPc
— Uniswap Labs 🦄 (@Uniswap) December 27, 2025
Token holders united like a horde of zombies in a George Romero flick, smelling the sweet rot of deflation.
Heavy hitters piled on, Variant’s Jesse Walden, Infinex and Synthetix boss Kain Warwick, even ex-Uniswap Labs wizard Ian Lapham.
Their votes turned whispers into a roar, flipping Uniswap from fee-slumber to burn-party mode.
A feedback loop of more trading, more burning
UNI burn hits hard, total supply crashes from 1 billion to around 730 million circulating. Scarcity? Now it’s got teeth.
UNI’s dancing at $6, and 19% over the week. Analysts high-five the rally, blaming, er, crediting, the shiny new fee-burn mechanism.
Before, liquidity providers hogged the trading feast. Now, protocol fees from Uniswap v2 and choice v3 pools fuel endless UNI pyres.
More trades, more burns. It’s a feedback loop straight out of a sci-fi economist’s fever dream, volume explodes, supply shrinks, prices moon. Chaotic genius.
Boosting activity and revenue
Experts say there’s organizational fireworks too. Uniswap Foundation teams shuffle under Uniswap Labs for slicker ops.
Labs ditches interface fees entirely, free rides for traders and devs! Lower barriers mean more suckers piling in, juicing activity, revenue, and that glorious deflationary mechanism.
Growth feeds the fire, fire feeds growth, did we mention that it’s a feedback loop?.
Etherscan seals the deal, those 100M UNI are ghosts now, building faith in this ride.
So, Uniswap just lapped the field. Sustainable tokenomics? They’re serving it with a side of sarcasm and a wink.
Watch UNI holders cackle as the protocol turns fees into flames, proving not all burns leave scars, they leave legends.
Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Kriptoworld.com accepts no liability for any errors in the articles or for any financial loss resulting from incorrect information.
Cryptocurrency and Web3 expert, founder of Kriptoworld
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With years of experience covering the blockchain space, András delivers insightful reporting on DeFi, tokenization, altcoins, and crypto regulations shaping the digital economy.
📅 Published: December 29, 2025 • 🕓 Last updated: December 29, 2025
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