Which Cantina bounty covers UNI fees?

Uniswap (UNI) has launched a $15.5 million Cantina bug bounty focused on new smart contracts that control the protocol’s fee-switch feature, introduced under the UNIfication governance proposal. This bounty aims to audit and secure these contracts before a community vote activates them Cantina bug bounty.

1. The bounty reviews the fee-switch contracts ahead of the on-chain vote Cantina bug bounty.
2. If approved, about 16% of trading fees would be used to burn UNI tokens, potentially increasing their value fee mechanism detail.
3. The proposal recently passed an initial review and is now in the bounty phase.

Deep Dive

1. What’s Covered

The Cantina bounty specifically targets the smart contracts that implement Uniswap’s protocol-level fee switch. This $15.5 million bug bounty is directly tied to the fee-switch components of the UNIfication proposal Cantina bug bounty.

• The goal is to strengthen these contracts before they are activated by a community vote Cantina bug bounty.

In simple terms: This bounty acts as a formal security check to reduce risks before the fee-switch feature is turned on, ensuring the code works safely and as intended.

2. How UNI Fees Work

The proposal suggests using a portion of Uniswap’s trading fees to buy back and burn UNI tokens. Reports estimate that around 16% of fees could be used for this purpose if the vote passes fee mechanism detail.

1. This change would make UNI not just a governance token but also one that benefits directly from the platform’s trading activity fee mechanism detail.
2. It aligns the interests of UNI holders with the success of Uniswap, as more trading means more fees and more token burns.

In simple terms: If approved, UNI holders could see increased value during times of high trading volume because part of the fees would be used to reduce the total supply of UNI tokens.

3. Timing and Governance

The UNIfication proposal has passed an initial review stage and entered the bug bounty phase. The full on-chain vote will happen after the audit period ends Cantina bug bounty.

• The bounty is currently active to ensure the fee-switch contracts are secure before they go live Cantina bug bounty.

In simple terms: The fee-switch feature is moving through a step-by-step approval process. The bug bounty is a key safety check before any changes are officially implemented.

Conclusion

The Cantina bug bounty focuses on Uniswap’s fee-switch smart contracts, which are essential for the proposed fee burn mechanism for UNI. If these contracts pass the audit and the community approves the proposal, UNI will gain a new way to capture value directly from trading fees. This bounty phase helps reduce security risks and ensures the system is ready before the final vote.

What are people saying about UNI?

The Uniswap community is caught between excitement over potential gains and concerns about big investors selling off. Here’s what’s happening right now:

1. Governance proposal sparks 28% price jump – Plans include burning tokens and upgrading the system.
2. Big investors divided – Some are buying more, while others sold $75 million worth of UNI during the price rise.
3. Price battle at key level – Resistance around $11.80 versus risks of a downward move.

Deep Dive

1. @johnmorganFL: Governance Proposal Drives Rally

"This proposal changes protocol fees and aligns incentives across the Uniswap ecosystem."
– @johnmorganFL (35K followers · 555K+ impressions · 2025-11-11 12:22 UTC)
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What this means: Positive for UNI. The plan includes burning 100 million UNI tokens and redirecting fees to token holders, which could reduce supply and increase demand.

2. @ai_9684xtpa: Whale Selling Raises Concerns

"A large investor from 2020 sold $75 million UNI during the recent price surge – is this disguised selling?"
– @ai_9684xtpa (Analyst · 2025-11-16 10:20 UTC)
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What this means: Negative sign. Early investors selling during hype may indicate doubts about the long-term strength of the rally despite upgrades.

3. CMC Community: Price at a Critical Point: $11.50 Support

"UNI is holding $11.50 support. A move above $11.80 could push it to $12.10, but failure might drop it to $11.30."
– CMC Trader (Post: 2025-08-13 00:50 UTC · 8.7K+ views)
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What this means: Neutral outlook. The price is consolidating, showing uncertainty. Indicators like RSI at 58 and a 30% drop in volume over 24 hours suggest weak momentum.

Conclusion

The outlook for UNI is mixed: optimism about the new fee-sharing governance clashes with selling by large holders and unclear price direction. Keep an eye on the $11.50–$11.80 range this week — a close above could confirm upward momentum, while a drop might lead to profit-taking down to $10.80. Also, watch exchange inflows for signs of big investors either accumulating or selling.

What could affect the price of UNI?

Uniswap’s price is currently influenced by two main forces: its deflationary token model and ongoing regulatory challenges.

1. Fee Switch & Burns – The protocol now burns UNI tokens from its revenue, reducing supply, which is a positive sign.
2. Regulatory Clarity – New laws provide some protection against securities-related risks for token buybacks, but uncertainties remain.
3. Whale Activity – Large holders are both accumulating and selling, creating mixed signals for price movement.

Deep Dive

1. Protocol Fee Activation & Burns (Positive Impact)

Overview:
On November 27, 2025, Uniswap approved the “UNIfication” proposal, which introduced a 0.05% fee on token swaps. All the fees collected are used to burn UNI tokens, permanently removing them from circulation. This could take out about $38 million worth of UNI each month, or roughly 1.5% of the total supply annually. Additionally, there’s a planned one-time burn of 100 million UNI tokens, which is about 16% of the total supply (The Block).

What this means:
By reducing the number of tokens available, and tying the burn amount to how much the platform is used, Uniswap creates a cycle that could increase UNI’s value over time. Similar token burns in other projects, like Binance Coin (BNB), have led to price increases of 3 to 5 times during periods of high adoption.

2. Regulatory Tailwinds & Risks (Mixed Impact)

Overview:
The 2025 Clarity Act redefines tokens like UNI as commodities after trading, which helps protect Uniswap’s automated token burns from being targeted by the U.S. Securities and Exchange Commission (SEC). However, investigations into how decentralized organizations (DAOs) like Uniswap are governed continue, especially regarding how much control Uniswap Labs has (Weex).

What this means:
While the new regulations offer some relief and make Uniswap’s token model more sustainable, any enforcement actions related to governance could cause investors to sell their tokens quickly.

3. Whale Accumulation vs. Profit-Taking (Neutral Impact)

Overview:
In November, large holders (often called “whales”) increased their UNI holdings by 11.66%. The top 100 wallets now hold about 8.98 million UNI tokens. However, after the proposal was approved, about $353 million worth of UNI was moved to exchanges, which usually signals selling pressure (Yahoo Finance).

What this means:
This activity suggests short-term price swings as early investors take profits. Still, the total number of UNI holders is growing (328,688 wallets, up by 68 since November 9), indicating ongoing confidence from long-term investors.

Conclusion

The future of UNI depends on whether the token burns can outpace the amount of tokens being sent to exchanges for sale, and if regulatory risks remain manageable. The $6.18 price level, based on Fibonacci retracement, is a key support point—if it holds, UNI could test $8.60 again. The big question is: Will the deflationary effect of the fee switch be strong enough to balance out whale selling? Keep an eye on the ratio of UNI tokens burned each month versus the net flow of UNI moving to centralized exchanges.

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What is the latest news about UNI?

Uniswap is gaining momentum through governance changes and growing interest from large investors, while holding important price levels. Here’s a quick summary of the latest updates:

1. Governance Overhaul Passes Initial Vote (November 27, 2025) – UNI holders approve a plan to unify fees and token burning.
2. Big Investors Increase UNI Holdings (November 28, 2025) – Large holders are buying more UNI even as prices dip.
3. UNI Holds $5.92 Support Level (November 26, 2025) – Technical signals suggest the price may stabilize before the next move.

Deep Dive

1. Governance Overhaul Passes Initial Vote (November 27, 2025)

Overview:
The “UNIfication” proposal passed its first voting stage with 63 million UNI tokens supporting it. The plan is to combine Uniswap Labs and the Uniswap Foundation under one governance system, activate protocol fees, and start a $15.5 million bug bounty program focused on fee-related contracts. A final on-chain vote is expected next week.

What this means:
This is positive for UNI because it moves the token from just voting rights to actually sharing in the platform’s revenue through fees and buybacks. However, there are risks ahead, especially related to security audits and whether enough voters participate in the final decision (The Block).

2. Big Investors Increase UNI Holdings (November 28, 2025)

Overview:
Experts have noticed that large holders, often called “whales,” are buying more decentralized exchange (DEX) tokens like UNI. The top 100 UNI wallets increased their holdings by 11.66% (about 8.98 million UNI) even though the price dropped 3.4% over the past month. UNI’s price is also showing signs of moving independently from Bitcoin, with a slight negative correlation (-0.13).

What this means:
Whales buying during a price dip suggests they expect the DEX market to bounce back, possibly because of the upcoming fee changes on Uniswap. Still, Bitcoin’s strong market share (58.68%) and a low Altcoin Season Index (33/100) could slow down gains in other tokens (Yahoo Finance).

3. UNI Holds $5.92 Support Level (November 26, 2025)

Overview:
UNI is trading around $6.12, holding above a key support level at $5.92 after falling 14% from recent highs. Technical indicators show mixed signals: the Relative Strength Index (RSI) is neutral at 46, but the Chaikin Money Flow suggests some money is leaving the market (-0.05).

What this means:
The $5.92 support is important. If the price falls below this, it could drop further to around $5.50. On the other hand, if UNI climbs above $6.55, it might start gaining momentum again. How the market reacts to the upcoming audit results on the fee changes will likely influence short-term price moves (AMBCrypto).

Conclusion

Uniswap’s governance update and growing support from large investors help balance out some of the short-term price uncertainty. The move to share fees and burn tokens could change UNI’s role in decentralized finance (DeFi). Still, the success of the fee-switch depends on smooth execution. Keep an eye on the $15.5 million audit results and Bitcoin’s market dominance for clues on where UNI might head next.

What is expected in the development of UNI?

Uniswap’s upcoming plans focus on improving the protocol, activating fees, and aligning its ecosystem. Here are the key milestones to watch for:

1. Protocol Fee Activation (2026) – Starting fees on v2 and v3 pools to burn UNI tokens.
2. Unichain Sequencer Fees (2026) – Using fees from Uniswap’s Layer 2 chain to burn more UNI.
3. MEV-Internalizing Auctions (Q1 2026) – Increasing liquidity provider (LP) earnings through a new auction system.
4. Growth Budget Launch (Jan 2026) – Allocating 20 million UNI per year to support protocol development.

Deep Dive

1. Protocol Fee Activation (2026)

Overview
The UNIfication proposal plans to start charging protocol fees on Ethereum’s v2 and some v3 pools, which make up 80–95% of liquidity provider fees on the mainnet. These fees will be used to burn UNI tokens through special contracts called TokenJar and Firepit.

What this means
Positive: Burning UNI reduces the total supply, which can help balance out new tokens being created each year.
Negative: Some liquidity providers might move their funds elsewhere if they feel their earnings drop because of the fees.

2. Unichain Sequencer Fees (2026)

Overview
Unichain is Uniswap’s Layer 2 solution designed to handle transactions faster and cheaper. It will take the fees it collects (after paying for data costs and a 15% fee to Optimism) and use them to burn UNI tokens. Unichain already handles about $100 billion in trading volume annually.

What this means
Positive: This creates a steady new source of UNI token burns.
Neutral: The success depends on how well Unichain competes with other Layer 2 options like Base.

3. MEV-Internalizing Auctions (Q1 2026)

Overview
Protocol Fee Discount Auctions (PFDAs) allow certain traders (called searchers) to bid for the right to make fee-free swaps. The winning bids are used to burn UNI tokens. This shifts profits from validators to UNI holders.

What this means
Positive: Could increase returns for liquidity providers by about $0.06 to $0.26 per $10,000 traded.
Risk: The system needs strong adoption to work well and avoid added complexity.

4. Growth Budget Launch (Jan 2026)

Overview
Uniswap Labs will receive 20 million UNI tokens per year (released quarterly) to fund growth projects like:

• Incentives for liquidity on v4 and Unichain
• Developer tools and new features
• Expanding to other blockchains and real-world asset partnerships

What this means
Positive: Provides resources to help Uniswap grow and attract more users.
Risk: Success depends on Labs’ ability to manage and scale these initiatives effectively.

Conclusion

Uniswap’s roadmap is focused on increasing the value of UNI tokens by burning supply, capturing MEV profits, and expanding the ecosystem. Moving from a governance-only token to one supported by fees and deflation could change UNI’s role in decentralized finance (DeFi). As v4 adoption grows and regulations become clearer, these upgrades could help Uniswap maintain its lead over competitors like Curve.

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What updates are there in the UNI code base?

Uniswap’s latest updates focus on making the platform more customizable, efficient, and secure.

1. Hooks & Gas Efficiency (January 2025) – Version 4 introduces modular plugins and cuts pool creation costs by 99%.
2. Smart Wallet Integration (June 2025) – Adds one-click swaps and lets users pay gas fees with any token through EIP-7702.
3. Bunni v2 Hook (June 2025) – Improves how liquidity is managed for smoother and more efficient trading.

Deep Dive

1. Hooks & Gas Efficiency (January 2025)

Overview: Uniswap v4’s main feature is “hooks”—custom smart contracts that allow developers to add their own rules to liquidity pools, trades, and fees. Along with system upgrades, this drastically lowers transaction costs for users.

A new “singleton” contract combines all pools into one, making pool creation 99% cheaper. “Flash accounting” cuts gas fees for complex trades by settling balances quickly, and native ETH support removes the need to wrap ETH into another token. Over 150 hooks are already live, enabling features like dynamic fees and automated trading strategies.

What this means: This is positive for UNI because hooks open up new possibilities, like on-chain limit orders, attracting more developers and big investors. Lower fees could also encourage more trading. (Source)

2. Smart Wallet Integration (June 2025)

Overview: Uniswap Wallet now uses smart wallets by default, based on EIP-7702. This lets users perform programmable transactions without moving their assets elsewhere.

Users can batch actions—like approving a token and swapping it—in a single click and pay gas fees using any token they hold. They keep full control of their funds, and permissions are limited to specific blockchains.

What this means: This update makes the user experience smoother but doesn’t directly increase Uniswap’s revenue. However, faster and simpler transactions might lead to more frequent trading. (Source)

3. Bunni v2 Hook (June 2025)

Overview: The platform now routes trades through Bunni v2, a hook that optimizes how liquidity providers manage their positions.

Bunni v2 automates fee collection and adjusts liquidity positions automatically, reducing the need for manual work by liquidity providers. This is part of Uniswap Labs’ plan to bring community-built tools into the main platform.

What this means: This is good news for UNI because better liquidity management can attract more liquidity providers, making pools deeper and reducing price slippage during trades. (Source)

Conclusion

Uniswap’s updates focus on giving developers more flexibility (with v4 hooks), lowering costs (through gas optimizations), and improving user experience (via smart wallets). These changes help Uniswap maintain its role as a leading liquidity platform in decentralized finance (DeFi). It will be interesting to see how hooks influence specialized markets like real-world assets (RWAs) or perpetual contracts.

Why did the price of UNI fall?

Uniswap (UNI) dropped 1.61% over the past 24 hours to $6.07, underperforming the overall crypto market, which fell by 0.43%. Here are the main reasons:

1. Technical breakdown – UNI fell below its $6.30 support level, with indicators showing weakening momentum.
2. DEX token underperformance – Tokens from decentralized exchanges (DEX) lagged behind those from centralized exchanges (CEX), with DEX tokens down 3.9% weekly versus CEX tokens up 3.9%.
3. Mixed governance progress – The UNIfication proposal moved forward but is now in a $15.5 million security audit phase.

Deep Dive

1. Technical Weakness (Bearish Impact)

UNI broke below a key support level at $6.30, which is an important Fibonacci retracement point. It is also trading below its 7-day and 30-day moving averages ($6.20 and $6.51, respectively). Technical indicators like the MACD and RSI suggest the selling momentum is increasing.

What this means: Traders who follow technical signals likely sold their UNI holdings after these support levels were broken, pushing the price down further. The next important support is at $5.92. If UNI falls below this, it could drop another 5-7%.

2. DEX Sector Drag (Mixed Impact)

Last week, tokens from decentralized exchanges fell by 3.9%, even though the trading volume ratio between DEX and CEX platforms increased. Large holders of UNI (the top 100 wallets) increased their holdings by 11.66%, but everyday investors remained cautious.

What this means: While big investors are accumulating UNI, many others are taking profits, which is holding back price gains. DEX platforms now account for 21.19% of total crypto trading volume, up from 5.4% in 2022. However, UNI’s price has dropped 37.25% over the past 90 days, showing that the token hasn’t fully captured this growth in value.

3. Governance Uncertainty (Neutral Impact)

The UNIfication proposal, which aims to unify governance and activate fee mechanisms, passed an initial vote with 63 million UNI votes. However, it is now undergoing a $15.5 million security audit.

What this means: Although this is a positive step for UNI’s long-term prospects, the audit delays the activation of a key feature that could increase the token’s value. Traders may hold off on buying until the on-chain vote, expected next week.

Conclusion

UNI’s recent price drop is due to technical selling pressure, a rotation away from DEX tokens, and delays in governance-related catalysts.

Key point to watch: Can UNI maintain support at $5.92 before the upcoming UNIfication on-chain vote? If it falls below this level, it might retest the November low of $4.77. On the other hand, successful activation of the fee-switch could improve market sentiment and boost the price.

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