Uniswap Labs and the foundation proposed activating a fee switch and a UNI burning mechanism, causing UNI's price to rise nearly 38% in the past 24 hours.

PANews reported on November 11th that, according to The Block, Uniswap is planning to activate a protocol fee switch based on the "UNIfication" governance proposal submitted Monday by Uniswap Labs and the Uniswap Foundation. According to forum posts, the plan aims to reduce the supply of Uniswap's native UNI token by activating a burning mechanism. The "UNIfication" plan employs a multi-pronged approach to reduce token supply. Firstly, it utilizes protocol fees earned by the Uniswap decentralized exchange and the Unichain sorter to burn tokens. Secondly, it directly burns the existing 100 million UNI tokens in the Uniswap treasury, which should have been burned after the fee switch was activated at token issuance. Simultaneously, the proposal will prevent Uniswap Labs from earning fees through its interface, wallet, and API; its Ethereum frontend has already earned a cumulative $137 million. Currently, the percentage of fees used for token burning is unclear, but the annualized revenue of various Uniswap versions is expected to exceed $2 billion. In addition to implementing a program to reward token holders, the "UNIfication" plan will merge the non-profit Uniswap Foundation into Labs, which is responsible for developing the protocol and Unichain L2.

According to Coingecko data, the price of UNI token is currently $9.01, up 37.9% in the last 24 hours.