Decentralized exchange Uniswap plans to burn native tokens Uniswap (UNI) for a gigantic sum of $1,4 billion.
Trading platform founder Hayden Adams made a proposal:
- Introduce a commission for processing transactions and spend the proceeds on buying back and destroying UNI;
- Immediately burn 100 million UNI, worth $878 million at the current rate, which are stored on the protocol balance;
- Conduct auctions to obtain a discount on the commission;
- Implement an aggregator that allows collecting commission from external liquidity sources;
- Concentrate efforts on developing the exchange and popularizing it.
Hayden Adams
If the majority of community members Uniswap If they support Adams’ initiative, UNI will become a deflationary digital asset. Ki Yong Ju, a researcher at CryptoQuant, calculated that the collected fees would amount to approximately $500 million per year if cryptocurrency trading volume, which has reached $1 trillion over the past 12 months, remains unchanged. Accordingly, in the first year after Hayden’s plan is implemented, $1,4 billion worth of tokens will be destroyed, and the circulating supply of UNI will be reduced by a quarter.
After Adams posted his proposal on the website Uniswap UNI’s price began to pump, soaring by almost 44% in a matter of hours. However, the upward trend quickly petered out, and the digital asset fell 15,7% during the correction. Nevertheless, if Hayden’s initiative is implemented, the coin’s price will certainly rise.
The rise and fall of the UNI exchange rate