UNIfication Plan Fuels 70% Rally in UNI and Whale Activity
Uniswap’s UNI token surged over 70% in a week after unveiling the UNIfication governance proposal, which introduces protocol fees for the first time. Retail FOMO and institutional interest spiked: whale transactions hit a four-year daily high, new UNI wallets reached a three-year peak, and spot average order sizes rose sharply. The proposal would burn 100 million UNI (16% of supply), redirect protocol and Unichain fees to ongoing UNI burns, and consolidate Uniswap Labs and the Foundation into a unified structure. Uniswap Labs plans to waive fees on its wallet and interface products, focusing all future revenue on the protocol. A 20 million-UNI annual growth budget will fund ecosystem expansion from 2026. If approved, UNIfication would mark the most significant governance and economic overhaul in Uniswap’s history, transforming UNI into a revenue-bearing asset and aligning long-term incentives for holders.
Bullish
The UNIfication proposal’s introduction of protocol fees and a significant token burn directly enhances UNI’s value proposition. Similar to Ethereum’s EIP-1559, burning 16% of supply and redirecting fees into ongoing burns tightens supply, while turning UNI into a revenue-bearing asset. The spike in whale transactions, new wallet creations, and larger spot orders reflect strong market confidence and FOMO. In the short term, these factors likely fuel continued price momentum and volatility as traders chase gains. Over the longer term, UNIfication aligns economic incentives, supports sustainable growth, and may attract further institutional participation, reinforcing a bullish outlook for UNI.