The post Uniswap Burns 100 Million UNI in One of DeFi’s Largest Supply Cuts appeared on BitcoinEthereumNews.com.

Altcoins Uniswap has fundamentally altered the economics of its native token, triggering one of the largest supply reductions ever seen in decentralized finance. In a single onchain transaction executed in the final days of December, the protocol permanently eliminated 100 million UNI from its treasury, cutting deeply into the token’s available supply and signaling a decisive shift toward aggressive value return. Key Takeaways Uniswap permanently removed 100 million UNI from circulation in a single onchain burn The burn reduced available supply by nearly $600 million at current prices UNI’s token economics are shifting toward a deflationary, usage-linked model At current market prices, the destroyed tokens represented nearly $600 million in value — a move that instantly tightened UNI’s supply profile and reframed how traders and long-term holders assess the asset. UNI Economics Enter a New Phase Rather than accumulating protocol revenue inside a treasury, Uniswap has now opted for direct supply reduction as its primary mechanism for capturing value. This change ties UNI more closely to trading activity across the protocol, effectively turning usage into a deflationary force. The burn follows the activation of protocol-level fees across parts of Uniswap’s infrastructure, including Ethereum-based pools and Unichain. Once operational costs are covered, excess fees are funneled toward further UNI destruction, embedding scarcity into the system’s design. This marks a departure from UNI’s earlier role as a governance-only asset, pushing it toward a model where ownership is directly linked to protocol performance. Market Reaction Highlights Renewed Interest The impact was quickly reflected in market activity. UNI posted a sharp move higher following confirmation of the burn, accompanied by rising trading volume and increased market capitalization. With the reduction completed, circulating supply now stands near 730 million UNI, well below the protocol’s original fixed cap. The supply shock has refocused attention on UNI…

---

Filed under: News - @ December 28, 2025 11:12 am