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Uniswap Protocol Token
About Uniswap Protocol Token
Uniswap is a decentralized exchange protocol that allows users to trade Ethereum-based tokens directly from their wallets without intermediaries. The Uniswap Protocol Token (UNI) is a governance token that plays a crucial role in the decentralized governance of the Uniswap protocol, allowing token holders to participate in decision-making processes related to the platform's future development and updates. UNI is primarily used for governance purposes, but holders may also be eligible to receive rewards or incentives through various liquidity mining programs or fee distributions. Uniswap was founded by Hayden Adams.
Uniswap (UNI) is the native token of the Uniswap decentralized exchange, a liquidity provider for the trading of tokens on the wider Ethereum network, also known as ERC-20 tokens. The Uniswap protocol is designed to be fully decentralized, using a trading model known as an automated liquidity protocol. This method gives users incentives to provide liquidity, which guarantees a liquidity pool, ensuring trades can be executed instantly at a known price.
Uniswap minted a total of 1 billion UNI at its launch, which it expected to distribute over the course of four years. Sixty percent of all UNI will be distributed to community members, while the remaining 40% will be for investors, advisers, and Uniswap team members. Once the total of 1 billion UNI is distributed, UNI will be an inflationary token with a perpetual inflation rate of 2%.
Uniswap’s protocol token went live in September 2020. In the subsequent months, it captured the bull run of the wider crypto market. The Uniswap price climbed to an all-time high of $45.01 on May 4 before pulling back along with the broader crypto market that month. The price of Uniswap fluctuated in the $15-$30 range during the summer of 2021.