**Uniswap (UNI) Surges 30% Amid $3 Billion Trading Volume Spike; New Governance Proposal Sparks Rally**
Uniswap’s native token, **UNI**, has surged nearly 30% in the past 24 hours, accompanied by a dramatic increase in trading volume that soared over 500% to exceed $3 billion. This remarkable performance has propelled the decentralized exchange (DEX) token to claim the 24th spot on CoinMarketCap, with a market capitalization now standing at approximately $5.44 billion.
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### Trading Volumes Explode, Investors Rush to Accumulate
The sudden spike in trading activity reflects growing investor enthusiasm around Uniswap’s evolving ecosystem. The 24-hour volatility for UNI currently hovers around 22.5%, showcasing a period of heightened price movement as market participants position themselves ahead of upcoming changes.
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### Fee Switch Proposal Sparks Talk of a Parabolic Rally
CryptoQuant CEO Ki Young Ju highlighted the potential for a “parabolic” rally if Uniswap’s long-discussed fee switch mechanism is activated. Ju emphasized that Uniswap v2 and v3 have collectively generated roughly $1 trillion in trading volume this year alone. Should the new fee model be approved, this could translate into approximately half a billion dollars in annual UNI token burns.
With around $830 million worth of UNI tokens resting on centralized exchanges, Ju suggested that the combination of increased token burns and a limited circulating supply could create a structural supply squeeze. This dynamic may significantly boost the token’s price, potentially making UNI one of the top cryptocurrencies to consider for 2025.
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### A Major Governance Overhaul: The “UNIfication” Proposal
Uniswap Labs and the Uniswap Foundation recently unveiled a comprehensive governance proposal titled **“UNIfication.”** This initiative aims to realign Uniswap’s ecosystem by:
– Activating protocol fees
– Introducing programmatic UNI token burns
– Redirecting Unichain sequencer fees into the burn mechanism
– Merging the Foundation’s core functions with Uniswap Labs to consolidate leadership and focus resources on expanding protocol adoption
The overarching goal is to evolve Uniswap from a simple DEX into a robust liquidity and infrastructure layer for tokenized value.
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### Key Features and Structural Changes
Among the significant innovations introduced in the proposal are:
– **Protocol Fee Discount Auctions (PFDA):** A new mechanism to internalize Miner Extractable Value (MEV) and enhance returns for liquidity providers (LPs).
– **Aggregator Hooks in Uniswap v4:** This feature will enable Uniswap to collect fees from external on-chain liquidity sources, further diversifying revenue streams.
– **Retroactive Token Burn:** The proposal includes a symbolic burn of 100 million UNI tokens from the treasury. This aims to compensate for the past period since UNI’s 2020 launch, during which protocol fees were inactive and tokenholders did not receive direct fee rewards.
Historically, Uniswap prioritized growth and decentralization over direct incentives for tokenholders by operating without protocol fees. The new governance framework marks a decisive shift toward rewarding the UNI community and creating sustainable value.
Additionally, the proposal outlines a **20 million UNI annual growth budget** dedicated to funding development initiatives, builder programs, and strategic partnerships. This budget aims to attract new institutional participants and expand Uniswap’s footprint across emerging blockchain ecosystems.
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### Looking Ahead
With these transformative changes on the horizon, the market’s bullish sentiment around UNI is understandable. Activation of the fee switch and implementation of the UNIfication proposal could redefine the token’s economic model, fueling further demand and scarcity.
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**Disclaimer:** Coinspeaker is dedicated to providing unbiased and transparent reporting. This article presents accurate and timely information but should not be construed as financial or investment advice. Given the rapid fluctuations in market conditions, readers are encouraged to conduct their own research and consult with a qualified professional before making any investment decisions.
https://bitcoinethereumnews.com/tech/uniswaps-unification-proposal-sparks-30-uni-surge/
