Understand Uniswap's major upgrade in 3 minutes: UNI Token welcomes a new chapter of value

The transition from "governance token" to "value asset"

Uniswap officially launched the "UNIfication" upgrade plan, which centers around upgrading UNI from a governance Token to a deflationary Token with actual value support. This upgrade directly links the value of UNI to the actual usage of the protocol for the first time.

Core transformation: Token value reconstruction

From governance rights to value capture

· UNI is no longer just a voting tool, but a valuable asset that can capture the actual revenue of the protocol.
· All protocol revenue will be used to buy back and burn UNI, creating a continuous deflationary effect.
· A one-time destruction of 100 million UNI to fill the "value gap" during the historical period when fees were not charged.

Four major sources of income drive value growth

1. Transaction Protocol Fee

· Enable the protocol fee feature for v2/v3/v4 versions
· The income scale grows linearly with the trading volume.

2. Layer2 Network Revenue

· All the revenue from Unichain's Sequencer is used for UNI burn.
· The development of L2 networks directly enhances the scarcity of UNI.

3. MEV Value Recovery

· Recover MEV profits through "Protocol Fee Discount Auction"
· Return the value originally taken by arbitrageurs to the protocol.

4. Aggregator Service Fee

· The v4 version aggregator charges fees for external liquidity sources.
· Let UNI capture the value of the whole-chain transaction routing

Build a value growth flywheel

Positive feedback mechanism:
More usage → Generate more income → Accelerate UNI burn → Enhance scarcity → Attract more users and developers → Further expand the usage scale

Organizational Change Support:

· Uniswap Labs stops charging for the front end and merges Foundation into Labs
· The focus shifts from "product development" to "protocol ecosystem development"
· All activities revolve around "increasing usage → increasing the amount of destruction."

This reform allows all participants in the ecosystem—developers, liquidity providers, users, and market makers—to collaborate and win together under a unified value system, jointly promoting the long-term sustainable development of the protocol.