Uniswap has launched a community vote to move its mechanism of burning transaction fees with the platform’s native token, UNI, to three new blockchain networks. With this step, the same system will be applied in a total of 13 different networks. So far, 18.1 million UNI and 258 different wallets have participated in the governance vote, which received 100 percent support, and the 10 million votes required for the decision have already been reached. The final voting will end on May 21.
Fee and burn mechanism expands
According to the management proposal, BNB Chain, Polygon and Celo stand out among the networks planned to be added to Uniswap. The protocol fee arising from each exchange made here is transferred to the Ethereum network and burned permanently at a special address, thus reducing the amount of UNI.
This mechanism has been implemented on Ethereum and nine different chains since December. Token migration with BNB Chain and Polygon will be provided using the Wormhole infrastructure. Celo, which was previously approved but could not be put into operation due to a technical configuration error, is intended to be included in the system again with this offer.
Mini dictionary: Token Burn is a frequently used system, especially for cryptocurrencies. A certain amount of tokens are permanently removed from circulation by sending them to publicly verifiable “dead” wallets. This reduces the total supply over time and can put upward pressure on the token’s value.
In community discussions on Uniswap forums, member Abel189 described this move as a logical continuation of the platform’s adaptation to the multi-chain environment. In addition, it was also noted that the ever-expanding inter-chain interaction could complicate management.
Kaereste and Manugotsuka from the L2BEAT management team stated that they voted in favor of this expansion after a technical review by their research team. In addition, it was stated that moving forward without any change in the current fee structure reduces risks and ensures compliance.
Data points to increased Binance outflows
On the market side, there has been a notable increase in UNI’s net outflows on the Binance exchange in recent days, according to CryptoQuant’s blockchain data. In parallel with the price falling to the lowest levels, the amount of UNI withdrawn to wallets began to increase. It is considered that long-term investors and users with large capital accumulated savings in this process.
This mobility reduces the selling pressure by restricting the supply in circulation as the amount of tokens withdrawn from the exchange increases. Analysts think that an uptrend zone may be formed after such outbursts. While a slight price recovery is currently observed in UNI, it is stated that if the upward trend continues at the current pace, the increase in demand may push prices up.
Who is Uniswap? How does it work?
Uniswap is an important DeFi project built on Ethereum that allows users to exchange cryptocurrencies via smart contracts, based on the decentralized exchange (DEX) model. Its governance is shaped by community voting; Decisions about innovations and technical updates in the protocol are made by UNI token holders.
This structure allows flexible and fast decisions to be made regarding adapting the Uniswap ecosystem to larger networks.
Forum discussions emphasized that the complexity of cross-chain messaging needs to be carefully managed. It was stated that in order for the updates and voting results made in this process to be effective throughout the platform, importance should be given to the harmony in the technical infrastructure.
As a result, Uniswap’s initiative to move the fee and burn application to new networks aims to both gradually reduce the UNI on the platform and expand the user base. After the voting process is completed, the community is closely monitoring which chains and technical standards it will be integrated into.
