UNI Token – The new Governance token from Uniswap
UNI, the Uniswap governance protocol token is live. In order to combat the strong competitive force especially from the AMM Sushiswap, Uniswap initiated their surprise launch. Ever since Uniswap started its operation it has always vouched to be a trustless platform with a vision to make it as decentralized as possible. The new UNI token protocol will be available through four liquidity mining pools. UNI token holders can in the future vote to add more pools after the initial 30-day governance grace period. Read on to find more out details about the usecase of the token itself.
Uniswap has always been inspired by Ethereum’s vision and has for long committed itself to the vision of permissionless access, security, and immutability. These three aspects are extremely important from the perspective of reaching out to financial services without the need to worry about discrimination or lack of accessibility. Uniswap to date stands as a huge competition to some of its centralized counterparts. And whatever success Uniswap has achieved until now has been without the involvement of the core development team indicating demand for permissionless financial services.
In less than 2 years, the protocol has already Supported over $20bn volume traded by 250,000 unique addresses across 8,484 unique assets. It has roped in integrations with hundreds of interfaces and applications. Uniswap is deemed fit to be positioned for community-led growth and self-sustainability. The introduction of UNI, an ERC-20 token serves the purposes and will also facilitate shared community ownership which will actively guide the project further.
Further Uniswap is known to embrace and apply the philosophies of neutrality and minimization. The governance framework will be limited to contributing to the protocol’s usage and development and in the long-term, it will look at broadening the scope of Uniswap.
How will the UNI Toke be allocated?
1 billion UNI have been minted at the genesis which will be accessible over a period of 4 years. The 4-years of initial allocation will be executed in the following manner.
- 60.00% to the members of Uniswap community [600,000,000 UNI]
- 21.51% to team members and future employees with 4-year vesting [215,101,000 UNI]
- 17.80% to investors with 4-year vesting [178,000,000 UNI]
- .069% to advisors with 4-year vesting [6,899,000 UNI]
Also, there will be a perpetual inflation rate of 2% per year which will start after 4 years. This will ensure there is continuous participation and relevant contributions are made to Uniswap.
For Uniswap, its community has the biggest hand in registering success over the last two years.
UNI Token + Uniswap Liquidity Mining program
An initial liquidity mining program will go live on September 18 2020 12:00 am UTC. The initial program will be functional until November 17 2020 12:00 am UTC and will target 4 pools on Uniswap Version 2
5,000,000 UNI will be allocated to each and every pool to LPs proportional to liquidity, which can be roughly estimated as given below:
- 83,333.33 UNI per pool per day
- 54 UNI per pool per block
Once the 30-day governance period will reach its vesting edge point, the Uniswap governance will manage and administer all UNI vested to the Uniswap treasury. In this period, governance can vote in order to allocate UNI towards grants, partnerships, additional liquidity mining pools, and other important concerns.
Uniswap governance is live from day 1, but the control over the treasury will be delayed until October 17th, 2020. The grace period will provide the community with an understanding of the nuances of the governance system. They can easily begin their deliberations on potential governance proposals.
UNI token holders will also ensure that governance decisions are taken keeping in mind laws and regulations surrounding it. In order to make this happen a fee switch has been initialized so that the UNI holders can use their contracts to vote on tokens for which they will collect fees. Major credit for the success of the Uniswap protocol goes to its community and it will continue to rely on the community to ensure great proposals are voted for.
UNI holders will have immediate ownership of:
- Uniswap governance
- UNI community treasury
- The protocol fee switch
- eth ENS
- Uniswap Default List (tokens.uniswap.eth)
- SOCKS liquidity tokens
UNI Token Resources