Uniswap burns 100 million UNI worth nearly $600 million after approving the fee burn mechanism

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According to analyst @EmberCN, Uniswap’s treasury has burned 100 million UNI tokens, equivalent to approximately $596 million USD at the market price at the time of execution. This move occurred shortly after the Uniswap community approved the (fee-burn) proposal, marking a significant change in the protocol’s economic mechanism.

Under the new proposal, transaction fees collected by the Uniswap protocol in the future will be used to buy back and burn UNI, thereby reducing the circulating supply of the token. This mechanism is expected to create long-term deflationary pressure and increase the value of UNI if the demand for using the protocol continues to grow.

The immediate burning of a large amount of UNI demonstrates that Uniswap is serious about implementing the community-approved commitment and could have a significant impact on market sentiment and the price outlook of the UNI token in the near future.

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