A surprise launch.
On September 16th 2020 Uniswap announced the launch of Uniswap Protocol Token. The $UNI contract’s address is : 0x1f9840a85d5aF5bf1D1762F925BDADdC4201F984. It is initially kind of airdropped to those who have previously used uniswap. My information is that you receive at least 400 $UNI per address you interacted with, even if the transaction failed. Make sure that it is the above mentioned contract you interact with when claiming, or adding the token to your erc20 compatible wallet.
The project team, in its effort to promote the principles of decentralization enacted the period which power will gradually pass to the community of Uniswap. Initially the token will be used to vote on adding more pools. It is clearly stated however that in the future, users will be able to collect fees on exchanges. This is an incentive that should not be overlooked.
Follows a quote from Uniswap blog, summarizing their intentions.
“UNI officially enshrines Uniswap as publicly-owned and self-sustainable infrastructure while continuing to carefully protect its indestructible and autonomous qualities.“
The initial total minted token supply is fixed at one (1) billion tokens. 600 million tokens, 60% of the total, will be allocated to community members over the course of four (4) years. An inflation rate of 2% is set to be enacted at the end of the four (4) year period, aiming to provide incentives to active users. This last point is more of a lash rather than a treat, since it means active users will be racing against inflation effects to produce interest rates greater than the devaluation.
On the other hand, those early adopters are being recognized as pioneers who will now be responsible to safeguard the integrity of the project, along their personal interests. Sort of protecting the golden eggs goose. If they fail to their mission, the eggs may turn out to be of tin.
If you have not interacted with Uniswap smart contract before, you may still be involved by purchasing the token in the open market, perhaps at a premium. Many people rushed to sell their tokens, but I, among others, believe that holding it may produce better yields in the future. It is all about timing after all. However, this is just an opinion, not investment advice.
Liquidity providers (LP).
Interacting with the Uniswap smart contracts as a liquidity provider in the past, provides you a little extra $UNI to claim. Keep that in mind, if you see that your tokens are more than 400. Those who provided liquidity in periods of low total liquidity get a little extra boost.
Future $UNI will be distributed to those providing liquidity on version 2. As soon as you can, you should migrate your funds to the latest version, taking into account the congested network’s high fees. It is a trade off that you will have to make a decision upon.
The Governance Treasury will distribute an initial amount of 150 million tokens and the rest will be released on a schedule over the four (4) years period. They will be allocated through various initiatives aiming to further develop and grow the project.
This move from Uniswap project team, really shook the “tree” and reshuffled the deck in the decentralized finance space. I believe it may even reverse the bearish or stagnant sentiment that was prevailing in the market the last few days. It may even spark a new bullish rally. I have noticed some preliminary signs of such a move. Still though, I do not hold this to be a prediction, just a possibility whose probability increased slightly the last couple of days. Not a certainty. The knowledge of uncertainty is still valuable and valid information.
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