Uniswap posts third highest UNI burn day with 106,000 tokens destroyed

Uniswap just torched 106,000 UNI tokens in a single day, making it the third largest burn event since the protocol flipped the switch on its deflationary mechanics. The burn was driven by the protocol’s relatively new fee collection and buyback system, which funnels revenue from trading activity into purchasing UNI on the open market and sending it to a permanent burn address. At current pace, annualized burns are tracking roughly $170 million in value, the highest sustained rate during regular (non-retroactive) operations. How Uniswap turned fees into fire The mechanism behind all this token destruction traces back to the UNIfication governance proposal, which passed in late 2025. Before that vote, Uniswap was printing billions of dollars in trading volume across its liquidity pools but the UNI token captured essentially none of that economic activity. UNIfication changed the math. The proposal enabled protocol-level fee collection across Uniswap v2 and v3 pools on multiple chains. Those fees flow into what the protocol calls TokenJar contracts, which execute UNI buybacks. The purchased tokens then get routed to the “Firepit,” which is exactly what it sounds like: a permanent burn...