Uniswap's Fee Restructuring Could Unleash $38M Monthly UNI Burn—Here's What Trigger Bots Should Know

Uniswap (UNI) is gearing up for a major tokenomics shift. Founder Hayden Adams has rolled out the “UNIfication” governance initiative, which fundamentally changes how the DEX captures and deploys protocol revenue. The headline: around $38 million could flow into monthly UNI buybacks, fundamentally reshaping the token’s supply dynamics.

At current market conditions with UNI trading at $5.31 (down 7.50% in 24 hours) and a $3.37B circulating market cap, the timing of deflationary pressure could prove significant for token holders.

How the new fee split works

The mechanics are straightforward but powerful. Uniswap’s existing 0.3% trading fee will now be split: 0.25% continues flowing to liquidity providers, while 0.05% routes to the protocol itself. Every dollar collected by the protocol goes directly into a UNI buyback and burn cycle, systematically reducing circulating supply.

Adams went further with a one-time 100 million UNI treasury burn—essentially accounting for historical fees that would have accrued since Uniswap’s inception. Additionally, Unichain’s layer 2 sequencer fees will feed the same burn mechanism, creating multiple revenue streams feeding into token destruction.

Beyond fee mechanics, the proposal introduces a unified Labs–Foundation governance model, fee-discount auction features, and new v4 aggregator tools to expand revenue sources even further.

$38M monthly burn: How it stacks up

Crypto analyst @bread_ crunched the numbers using Uniswap’s historical trading data. Given roughly $2.8 billion in annualized trading fees, the 0.05% protocol allocation translates to approximately $38 million monthly for UNI buybacks.

To put this in perspective: PUMP achieves $35M monthly buybacks, while HYPE leads at $95M. Uniswap’s projected burn rate would slot the DEX between these two buyback-driven tokens, positioning it as a serious competitor in the deflationary token category. For trigger bots monitoring buyback volumes and token velocity, this represents a sustained, protocol-level mechanism rather than temporary market support.

The structural change essentially turns Uniswap into a self-reinforcing system where protocol success (more trading = more fees) directly accelerates token scarcity and potential value appreciation.