The Uniswap decentralized exchange (DEX) community has ratified a decision relevant to its economic structure by approving a massive burn of 100 million units of its native UNI token.
The voting process, which concluded yesterday, December 25, after five days of activity, had an overwhelming support of 125 million voting power in favorwhich represents more than 99% of the total participation.
This measure transforms the nature of UNI by implementing a programmed shortage mechanism that permanently removes a significant portion of the total supply from circulation.
The execution of this massive burn is integrated into a restructuring proposal that activates protocol fees to encourage asset deflation. Under this new model, The income generated by the use of the system will be used to eliminate the aforementioned unitswhile Uniswap Labs will cease charging interface fees to focus on the technical development of the software.
This movement seeks for the growth and adoption of the platform to directly impact the reduction of the available supply of UNI, establishing a close link between the protocol’s activity and the monetary policy of its digital asset.
As indicated by Criptopedia, the educational section of CriptoNoticias, Uniswap operates as a decentralized exchange protocol on Ethereum and other networks, facilitating the trading of digital currencies without centralized intermediaries.
Despite the magnitude of the destruction of these 100 million units, the price has not reflected an immediate bullish impact. The price of the crypto asset has shown a lateral behavior, falling slightly from 6 dollars to 5.8 dollars after the announcement.
This phenomenon suggests that the market remains waiting for the technical implementation of the changes, which will mark the operational future of Uniswap within the Ethereum network. Also, the overall macroeconomic outlook will define where the price of UNI and other cryptocurrencies goes.