UNI's Latest Burn Proposal All related fees will flow into the immutable TokenJar contract and can only be extracted by burning UNI tokens through the Firepit contract, ensuring that 100% of the fees are used for burning. Estimated Burn Quantity 1. Initial burn of 100 million, reducing circulating supply from 625 million to 525 million. 2. Continuous burn: - Short-term (by 2026): Estimated 10-15 million UNI/year. Based on the current Uniswap DEX daily trading volume of approximately $650 million to $1 billion (v3 Ethereum alone has reached $658 million/day, with total volume even higher), an average protocol fee rate of 0.025%, and an annual trading volume assumption of $2-3 trillion, this could generate approximately $50-75 million in fees, all used for burning (calculated at a UNI price of $7, approximately 7-10 million UNI). Additionally, Unichain contributes $7.5 million in annual fees (around 1 million UNI). - Long-term (after 2027): If Uniswap's trading volume grows by 20-50% (historical CAGR is around 100%, but this is a conservative estimate), annual burns could reach 20-30 million UNI, accounting for 0.4-0.6% of circulating supply. PFDA and hooks will contribute an additional 10-20% to the burn rate, depending on the scale of MEV. Estimated Burn Rate - Daily rate: Approximately 27,000-41,000 UNI/day (based on $250,000-$300,000/day in fees). - Monthly rate: Approximately 0.8-1.2 million UNI/month. - Annual rate: As mentioned above, 10-30 million UNI/year, with growth depending on trading volume and governance adjustments (fee rate could be increased to 1/3 of LP fees). Contributions from Unichain and other L2 solutions will accelerate rollout, and after full coverage by mid-2026, the burn rate is expected to stabilize at 0.025% of trading volume in equivalent UNI. The ultimate fate of platform tokens is deflation through burning. $BNB has been setting an example for years now. Maybe $OKB should bring back its deflationary model too? #UNI #Uniswap #Crypto #TokenBurn #DeFi #Blockchain #CryptoNews