UNI price prediction as Uniswap burns 100 million tokens

The UNI price held steady at $6 on Sunday as investors reacted to the latest token burn after the recent token burn. Uniswap’s token was up by 25% from its lowest point this year. This article explores what to expect with the UNI token in the coming days.

Uniswap burns 100 million tokens

One of the top crypto news stories during the weekend was that the Uniswap team incinerated 100 million UNI tokens worth over $591 million.

The token burn was because of the recent Unification vote by the Uniswap community that introduced more features to boost its tokenomics. This vote passed overwhelmingly, with 125.3 million UNI tokens voting in favor against 742 who opposed it. 

The UNIfication proposal sought to do a few things. First, and most important, it unified the fees made hy the Uniswap exchange and Unichain, its layer-2 network. These fees will now be burned, improving its tokenomics by making it deflationary.

Second, the proposal suggested that Uniswap should burn 100 million tokens that were in its treasury. These tokens came from the network fees it collected in the past few years as it handled over $1 trillion in trade volumes.