Uniswap destroyed 106,000 UNI tokens in a single day, marking the third largest burn event in its history and the highest ever recorded on a regular day. This burn is part of the fee collection and buyback mechanism implemented through the UNIfication governance proposal in late 2025, which redirects protocol revenue toward purchasing and permanently destroying UNI tokens. The annualized burn rate currently stands at approximately $170 million, the highest ever recorded during regular operations. Combined with a one-time retroactive burn of approximately 100 million UNI on December 28, 2025, total UNI destroyed now exceeds 107 million tokens, representing over 10% of the initial 1 billion token supply. This deflationary dynamic remains tied to trading volumes, which can fluctuate significantly with market conditions.
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