This week, the DeFi market witnessed a rare moment of optimism and consensus. Uniswap officially activated its fee switch, a mechanism that directs a portion of protocol fees toward burning UNI tokens. Anticipated for nearly three years, this move has been interpreted by investors as a clear sign that DeFi is returning to its core principles of shared benefits and transparency. The community welcomed the decision as a restoration of trust, shaken by a series of high-profile collapses and frauds in 2022.
According to Presto Research, the activation of the fee switch also removed a major legal hurdle — the risk of tokens being classified as securities. Following remarks by SEC representative Michael Atkins, who noted that “most crypto assets are not securities,” the DeFi sector gained renewed momentum.
Prominent Ethereum advocate Ryan Sean Adams called the Uniswap decision “the day faith returned to DeFi.” He explained that since 2022, the sector had suffered from cynicism and disappointment after several scandals, including the collapses of FTX, Terra, and multiple NFT ventures. While many had believed that Uniswap had abandoned the idea of sharing protocol revenue with token holders, the activation of the burn mechanism and the subsequent plan to compensate 100 million UNI shattered that narrative.
Presto Research also notes that Uniswap’s move could serve as a catalyst for other DeFi protocols, particularly those where annual fees exceed 15% of market capitalization but lack a structured revenue-sharing mechanism for token holders.
Atkins’ remark that “DeFi will be part of our securities markets” sparked industry discussion, signaling that regulators are increasingly open to integrating DeFi into the formal financial infrastructure, rather than pushing it out. This development reduces pressure on developers and eases the launch of new tokens with built-in revenue features.
