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Recently, a major event has shaken the crypto world. A leading DEX protocol, through a community vote (with a support rate of 99.9%), officially launched a proposal called "UNIfication"—which involved directly burning 100 million UNI tokens, with a market value approaching $600 million. This is not just a simple burn; it hides a revolutionary change in the entire tokenomics framework.
Why is this different? Mainly from three perspectives:
**First, the fundamental change on the supply side.** Burning such a large amount of tokens at once is like performing major surgery on the circulating supply. But even more impactful is what comes next—the protocol’s fee switch is fully turned on. Some transaction fees from V2 and V3, as well as all income generated by Layer2 networks, are used to buy back UNI and burn it. The larger the protocol’s trading volume, the more fees are generated, and the more UNI is burned. This creates a true deflationary flywheel, not just an illusion.
**Second, a complete rewriting of identity.** Previously, UNI was just a governance tool, and holding it was for voting. Now? It has become an asset that can directly share the protocol’s cash flow. As long as transactions occur on this platform, the generated revenue will continuously be used to burn UNI. Among mainstream DeFi projects, this tokenomics setup is considered top-tier.
**Third, an upgrade in narrative layers.** The market always loves to chase hot topics—buying whatever concept is trending. But where is the real value? It lies in continuous, sustainable, and calculable cash flow. UNI’s new mechanism embodies this—every transaction helps support the token’s price.
Since the proposal passed, UNI’s price has already responded very positively. More importantly, this upgrade has provided a long-term and solid foundation. The market’s initial reaction is just the beginning; the true trend will depend on subsequent trading volume performance and the overall movement of the DeFi ecosystem.