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Uniswap redirects all test token fees to buyback and burn UNI tokens, boosting token scarcity.

Protocol Fundamentals
12 Aug 2026
Crypto Briefing
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Bullish
Uniswap redirects all test token fees to buyback and burn UNI tokens, boosting token scarcity.

Uniswap Labs has redirected 100% of creator fees from test tokens to its UNI token buyback-and-burn program, instead of retaining these fees. This change is part of the UNIfication governance framework approved in 2025, which ensures protocol fees contribute directly to reducing UNI supply by buying and burning tokens. The ongoing burn mechanism follows a major treasury burn of 100 million UNI tokens in December 2025 and currently generates an estimated $26 million annualized burn from Ethereum v2 and v3 pools. This continuous burn helps reduce UNI's total supply, potentially increasing token scarcity and value over time as Uniswap expands further.

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