Uniswap Labs is redirecting 100% of fees generated by test tokens to the UNI token burn mechanism instead of depositing them into its own accounts. This move is part of a structural overhaul called UNIfication, approved by the Uniswap DAO in November 2025, which activated the protocol fee switch. In December 2025, Uniswap’s treasury executed a one-time burn of 100 million UNI tokens, representing approximately $600 million and reducing total supply by 10%. Protocol fees on Ethereum v2 and v3 pools now generate an estimated annualized burn rate of around $26 million, with potential for growth through expansion to v4 and additional blockchain ecosystems.
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