According to Adams, the initiative was shaped not only by Uniswap’s growth. But he mentioned that the challenges it has faced in recent years had made it necessary.
These include prolonged legal battles and what he described as a hostile regulatory environment under the leadership of former SEC Chair Gary Gensler.
“This proposal establishes a long-term model for how the Uniswap ecosystem would operate, where protocol usage drives UNI burn, and Uniswap Labs focuses on protocol development and growth,” Adams opined in his first draft.
In the official submission, the founder noted that the proposal would include activating Uniswap’s protocol fee switch.
If approved, the change would also involve the burning of 100 million UNI tokens, a move aimed at altering the protocol’s value-capture mechanics rather than short-term price action.
Voting on the proposal officially began on Dec. 19 and will conclude on Dec. 25. At the time of writing, the outcome appears increasingly tilted toward approval.
That assessment reflects in the voting breakdown so far. Approximately 69.42 million UNI tokens have been cast in favor of the proposal, compared with just 741 votes against it, while around 1.5 million tokens have abstained.
While the vote remains open, the current margin suggests limited resistance, unless there is a late shift in participation.
If the current voting trend holds, the proposal would be implemented following a two-day timelock period, in line with Uniswap’s governance process.
UNI Exchange Balance Keep Falling
From an on-chain perspective, exchange balances indicate a notable shift in supply.
Since the proposal, holders have withdrawn more than 35 million UNI tokens from exchange wallets.
A decline in exchange-held supply is a sign that holders are moving tokens into long-term storage.
That said, reduced exchange supply does not guarantee a price increase on its own. The impact on Uniswap’s price will depend on whether demand strengthens in line with the potential reduced supply.
UNI Exchange Net Position Change | Credit: Glassnode
If buying volume accelerates, particularly in the context of a potential token burn and fee switch activation, the setup could become increasingly supportive for an extended UNI price rally.
UNI Price Prediction: Bullish
From a technical standpoint, the daily chart shows that UNI’s price has broken above the upper trendline of a falling wedge.
While historical moves do not guarantee repetition, such patterns often serve as reference points for market behavior rather than forecasts.
Supporting the technical breakout, holder sentiment has turned positive for the first time since Nov. 29, suggesting improving confidence among market participants.
If this shift persists, Uniswap’s price could attempt to reclaim resistance near the $7.66 level.
A break above that zone would place the 0.618 Fibonacci retracement around $9.43 into focus, representing roughly 55% upside from current levels.
That said, the bullish setup remains vulnerable to broader market conditions.
If risk appetite deteriorates and demand weakens, the breakout could fail, opening the door for a retracement back below $5.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
