Uniswap has turned on its fee structure, potentially repurchasing and burning approximately $460 million worth of UNI annually, resulting in an annualized deflation rate of about 5%.

KOL "@Michael_Liu93" posted that Uniswap's launch of protocol fee collection and the burning mechanism of 100 million UNI tokens will be seen by the industry as a key milestone in DeFi entering the "cash flow pricing era." This mechanism gives UNI real cash flow support for the first time, directly linking the token value to protocol revenue, and driving DeFi from narrative-driven to profit-driven. Analysis points out that Uniswap will spend approximately $460 million in transaction fees annually on buybacks and burning, with an annualized deflation rate of about 5%, and valuation metrics of approximately a P/E ratio of 21 and a P/S ratio of 3.5. Compared to Hyperliquid (P/E 37x) and Pump (P/E 6–8x), UNI combines reasonable valuation with growth potential, becoming the first representative of a "valuable token" among DeFi blue chips.