Uniswap UNI Burn Proposal Details: Fee Switch and 100M UNI Burn Plan

Uniswap UNI Burn Proposal Gains Support as Fee Switch Vote Continues

Can a community vote really change how a crypto token works? As the Uniswap UNI burn proposal continues to gain the most attention across the crypto space, that's what's at the forefront of investor's minds right now.

The proposal, "UNIfication," is in its final community voting stage. According to data on the blockchain, the number has already crossed the 69 million tokens voting in favor, far beyond the 40 million tokens in favor required for the latter to move a step ahead. 
Source: Official Website 

Voting is still open until December 25th and participation remains strong.

What Is the Uniswap UNI Burn Proposal About?

In essence, the Uniswap UNI burn proposal is all about how the project deals with fees and how it monitors the UNI token supply over time.

The proposal intends, if the vote continues to hold, to burn 100 million tokens from existing treasury funds. 

Also, it intends to turn on protocol fee switches for Uniswap v2 and v3; this would see a portion of the trading fees generated on the platform used in the burning of tokens on a regular basis. Fees from Unichain would also be included.

Combined, these changes are supposed to gradually decrease the supply and better link the token's value to project's actual usage. 

How UNI Price Has Reacted So Far

The news around the Uniswap token burn proposal has already sent ripples through the market. In the last few days, the coin rose nearly 25% to briefly reach levels close to $6.50. For now, it is trading at around $6.30, down by about 0.81% in the last 24 hours.

Source: CoinMarketCap

This small pullback resembles normal profit-taking after a strong rally. Many traders locked in gains after the price moved up so quickly, and that did slow momentum in the near term.

Whale Activity Draws Attention

On-chain activity indicates large traders are closely following the update. One prominent whale opened a 10x leveraged long position near $5.20 ahead of the surge in voting activity. That position is now sitting on more than 150% unrealized gains.

He has set take-profit levels between $6.52 and $10, and not having closed the position means the trader is confident in crypto's direction as the vote continues.

Short-Term Price View

Until the vote wraps up, UNI Token will likely move sideways in the very short term. 

• Above the range of $5.80-$6.00, the trend remains healthy

• A push above $6.50 may bring fresh buying interest if market sentiment improves.

Bigger Picture

Even with strong support of the Uniswap UNI burn proposal, the wider crypto market is cautious. Bitcoin dominance remains high, with most altcoins experiencing slower trade activity. This continues to be the broader market mood that impacts crypto's price action.

What Comes Next? 

Attention now shifts to the final days of voting. Among the most consequential governance decisions the protocol has faced in years.  

As the vote continues, traders and long-term holders alike watch closely as to how project's next chapter will be built upon.

Disclaimer: This article is for informational purposes only and not a financial advice, kindly do your own research before investing.