Woke up to see UNI skyrocketed by 50%! The fee switch activation expectation has been realized—UNI is no longer just a governance token but now backed by revenue. The DeFi revenue-sharing narrative is accelerating. Key points of the proposal: UNI V2/V3 pool fees—1/6 will be used for UNI buyback and burn, while Unichain L2 fees will be fully burned; retroactive burn of 100M UNI. 1. Fee Switch officially activated: The protocol fee mechanism is now live, redirecting a portion of trading fees (0.05% for V2 pools, 1/4 or 1/6 of LP fees for V3 pools) directly for UNI buyback and burn. Additionally, Unichain L2 sequencer fees (after deducting L1 data costs and OP’s 15%) will be fully burned. This marks the end of UNI’s 5-year history of “no revenue accumulation.” Over the past 30 days, Uniswap’s fee revenue reached $230M, annualized at $2.76B. Allocating 1/6 for burning will create an annual deflationary pressure of approximately $460M. 2. Retroactive burn of 100M UNI: The proposal includes an immediate burn of 100M UNI from the treasury (10% of total supply, worth approximately $950M) to compensate for the “historical oversight” of unactivated fees since the token’s launch in 2020. 3. Improved regulatory environment: Hayden Adams emphasized in the proposal that over the past 5 years, due to regulatory pressure from entities like the SEC (costing millions in legal fees), Labs was unable to participate in governance or activate fees. Now, with a friendlier U.S. regulatory stance and Wyoming’s DUNA legal structure, the fee switch has compliance protection. 4. Ecosystem optimization and Labs restructuring: The proposal introduces the Protocol Fee Discount Auction (PFDA), allowing users/LPs to bid for zero-fee trading periods, enhancing LP returns and internalizing MEV. V4’s “aggregator hooks” will aggregate external liquidity and charge fees. Labs will stop charging interface/wallet/API fees and focus on protocol growth. Foundation staff will merge into Labs, forming a unified growth fund. UNI has begun ending the “product-token decoupling” era—UNI is no longer just a speculative token. DeFi’s spring is here again. UNI is now around $10, and it’s estimated to reach $15–20. SUSHI, CRV, and others also jumped by 10%+.