The famous decentralized exchange Uniswap has just unveiled its governance token, the UNI. Already listed on Binance and Coinbase Pro, this ERC-20 token trades around $ 4 and all platform users before September 1 can receive 400 UNI.
A cog in decentralized finance (DeFi), Uniswap is now uniquely positioned for community-led growth, development and empowerment
With this in mind, the team decided to introduce Bitcoin Circuit, an ERC20 token allowing users to have a weight for the future of the protocol.
“Uniswap has always adhered to the principles of neutrality and the minimization of trust: it is crucial that governance is limited to areas where it is strictly necessary. With this in mind, the Uniswap governance framework is limited to contributing to the development and use of protocols as well as the development of the larger Uniswap ecosystem, ”says Uniswap.
UNI token holders are therefore invited to participate in the governance proposals for Uniswap. Note that Uniswap team members will not directly participate in governance, although they may delegate votes.
Although the developers don’t mention it, the arrival of the UNI token is a direct response to its SushiSwap clone and SUSHI token. As a war broke out between the two protocols over who would attract the most liquidity, SushiSwap had managed to vampirize more than $ 830 million once locked on Uniswap.
How will UNI be distributed?
According to Uniswap’s blog post , 1 billion UNI tokens have been forged, which will be distributed over a period of 4 years as follows:
60.00% to Uniswap community members
21.51% to team members and future employees with a 4-year restrictive covenant
17.80% to investors with a 4-year restrictive covenant
0.69% to advisors with a 4-year restrictive covenant
Note that from the 5th year, an annual inflation rate of 2% will be applied.
15% of the total supply has already been distributed to former users, ie 150,000,000 UNI . Thus, if you have already used Uniswap (before September 1, 2020), you can collect 400 UNI in the form of an airdrop by going to the platform.
For starters, UNI is available through four liquidity pools, USDT , USDC , wBTC and DAI. Outside of Uniswap, the UNI token is already available on the Binance and Coinbase Pro platform , and is trading at the time of writing for around $ 3.6.
By selling your UNI directly, you can therefore get between several hundred dollars, depending on the price of the UNI token when you sell it. As of this writing, 400 UNI equals $ 1,440.
Armed with its own governance token, Uniswap is now able to resist the invader . SushiSwap, SashimiSwap and all its clones are not as interesting as they used to be. Furthermore, the SUSHI price has suffered since the introduction of the UNI token.
In the days to come, it is quite possible that Uniswap’s liquidity will increase significantly . At the same time, this spectacular craze for the UNI token should probably subside, as should the significant volatility of its price.