Weekly Project Updates: Uniswap Proposes to Activate Protocol Fees, Magic Eden Launches Buyback Program, Aave May Delist High-Volatility Tokens as Collateral, etc

1. Uniswap Proposes to Launch Protocol Fees and UNI Burning Mechanism, with Foundation Functions to Be Merged into Labs link

The Uniswap Foundation and Uniswap Labs have jointly put forward a governance proposal, which intends to launch a protocol fee mechanism, reduce the total supply of UNI, and trigger the burning of UNI through protocol usage so as to restructure the ecological incentive model. The proposal also includes the establishment of the Uniswap Growth Budget, which will be used to fund protocol and ecological development under the framework of the service provision agreement. Meanwhile, most of the foundation’s functions and teams will be merged into Uniswap Labs. The foundation will continue to fulfill its existing grant commitments and terminate its operations after disbursing the remaining grant budget of approximately $100 million.

2. Aster Team Confirms Recent Revision to Tokenomics link

The team of Aster, a derivatives exchange, has confirmed recent revisions to its tokenomics. Data shows that multiple batches of ASTER tokens originally scheduled for unlocking in 2025 have been canceled; their unlocking timelines have been collectively pushed back to the summer of 2026, with some even deferred to 2035.

The team responded that they initially planned to conduct monthly ecosystem-based token unlocks, but have decided to suspend these unlocks since there is currently no demand for the utilization of the tokens in question.

3. Babylon Completes Mainnet Upgrade, Lowers Inflation and Launches Co-staking Mechanism link

Babylon announced the completion of its mainnet upgrade, officially launching two adjustments to the BABY token economy and rolling out the BTC staking extension feature. The annual inflation rate has been reduced from 8% to 5.5%, cutting the annual new issuance of BABY by approximately 250 million tokens. A joint staking mechanism for BABY and BTC has been introduced, enabling users who stake both assets to earn higher rewards. The BTC staking extension feature allows users to extend their existing lock-up periods without interrupting their earnings. The team stated that it will continue to advance the utility of BABY and the sustainability of its token economy around the Trustless Bitcoin Vault protocol.

4. Lido DAO Proposes Launch of LDO Auto-buyback Mechanism, Planning to Deploy LDO/wstETH Liquidity and Boost Token Utility link

The Lido DAO community has initiated a liquidity repurchase proposal, aiming to launch an automatic LDO repurchase mechanism. This mechanism will deploy LDO/wstETH liquidity across the board through Uniswap-v2 style LP positions, with ownership of the positions retained in the Aragon Agent. It seeks to remove LDO from circulation via the repurchase mechanism while enhancing LDO’s utility. If the proposal is approved, the plan is expected to be implemented around the first quarter of 2026.

5. Magic Eden Launches Cross-chain Secondary Market Buyback Mechanism, 30% of Fees for Repurchasing ME Tokens and NFTs link

Magic Eden, an NFT trading platform, announced the immediate launch of a brand-new repurchase program. It will allocate 30% of all its secondary market revenue to repurchases — 15% of which will be used for on-chain repurchases and burning of ME tokens, while the other 15% will be dedicated to repurchasing popular NFTs across various blockchains and incorporating them into the official “Permanent Collection”.

Magic Eden stated that the repurchases will be automatically triggered, and bulk purchases will be executed once sufficient fees have accumulated. Moreover, this repurchase mechanism is set to be expanded to all blockchains within the next few weeks.

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6. Pump Fun Rolls Out Experimental “Mayhem Mode”, Introducing AI Agents to Participate in New Token Trading link

Pump.fun announced the launch of an experimental Mayhem mode, allowing AI agents to participate in the trading of newly issued tokens. This automated bidding method is a new breakthrough for both AI agents and Meme coins, as most agents previously relied on human assistance. Pump.fun stated that the mode aims to increase early trading volume by introducing AI agents, but it has not explicitly announced the agents involved; instead, it allows the community to discover them independently from relevant documents. Unlike previous instances, AI agents will not create new tokens this time.

7. Jito Labs Launches Block Assembly Marketplace (BAM): Enhances Solana’s Execution Transparency and Fairness link

Jito Labs, a Solana MEV infrastructure provider, released a post introducing its launched Block Assembly Marketplace (BAM), stating that it can address Solana network pain points, strengthen on-chain advantages, and facilitate the implementation of the “Internet Capital Market”.

The article points out that BAM can ensure the transparency and fairness of Solana’s execution layer, driving on-chain transactions to surpass centralized venues. It analyzes that Solana currently faces execution uncertainty due to seven different transaction schedulers. It explains that BAM is built to learn from the bad incentive lessons of Ethereum’s Proposer-Builder Separation (PBS) and avoid repeating the same mistakes.

BAM implements Application-Controlled Execution (ACE) through a plug-in system to solve the shortcomings of FIFO ordering. In terms of security and decentralization, it relies on Trusted Execution Environments (TEE) to ensure verifiable transaction settlement, and elaborates on security from physical security and confidentiality perspectives.

In the future, BAM plans to open-source its code, expand ACE, decentralize operators, implement collaborative block building, and achieve acceleration through FPGA hardware.

8. Aave Community Vote May Delist Multiple High-volatility Tokens as Collateral, Due to Oracle Price Spread Risks and Insufficient Returns link

According to DeFi researcher Ignas, affected by the market crash on October 11th, the Aave community is advancing a plan to reduce the collateral ratios of high-volatility assets such as CRV, UNI, ZK, BAL, LDO, 1INCH, METIS, and CAKE to 0 and gradually remove their lending and borrowing functions. During the crash, the prices from some oracles jumped by 15% — 50% in a single move, and there were even delays of several minutes. This led to a huge deviation between the actual on-chain prices and the oracle prices, thereby triggering exploitable bad debt risks. At the same time, the lending and collateral yields of the aforementioned assets on Aave are extremely low, resulting in a serious mismatch between risks and returns. Therefore, the community voted in favor of removing the relevant collaterals.

9. EigenCloud and LayerZero Launch Cross-chain Validation Network EigenZero link

EigenCloud and LayerZero jointly launched “EigenZero”, a Decentralized Verification Network (DVN) based on the CryptoEconomic DVN Framework. Supported by EigenCloud’s infrastructure and backed by approximately $5 million worth of staked ZRO assets, it introduces slashable economic constraints for cross-chain message verification. It adopts an optimistic verification model: messages are deemed valid by default with an 11-day challenge period; once proven incorrect or malicious after final confirmation, the relevant stakes will be slashed, providing security guarantees for cross-chain applications.

10. Aerodrome to Launch Unified Platform Aero, Planning Expansion to Ethereum and Arc link

Dromos Labs, the developer of Aerodrome, a DEX on the Base chain, has launched a new trading hub named Aero and announced its expansion to the Ethereum mainnet as well as Circle’s Arc chain. Aero will integrate Aerodrome and Velodrome, which is deployed on Optimism. It plans to roll out a unified token, AERO, in the second quarter of 2026 to replace the existing AERO and VERO tokens. Approximately 5.5% of the tokens will be allocated to VELO holders, with the remaining 94.5% going to existing AERO holders, and no new tokens will be issued.

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