Uniswap, the most used decentralized exchange in the Ethereum blockchain, released a management token called UNI on September 16. The protocol gave 400 UNI to each ETH address using the exchange before 1 September.
At a price of $ 3 per token, 400 UNI is worth $ 1,200, which coincidentally is the same amount as a US incentive check. Currently, UNI is trading at $ 3.76 on Binance, down slightly over the past few hours.
When UNI was first released, it was traded at $ 1.76. Depending on where users sell their UNI, the 400 UNI will range from $ 704 to $ 1,464.
Uniswap said in a statement; “Every address using Uniswap v1 or v2 contracts can request 400 UNIs. This includes about 12,000 addresses that only sent failed transactions – I love you ”.
Binance, Coinbase Pro and FTX have listed the UNI within five hours since launch.
What is UNI and Why Did Uniswap Launch a Governance Token?
The Uniswap team has planned its token as a management token for a long time.
A management token for a decentralized protocol like Uniswap can provide several benefits. It has two main benefits; it allows the protocol to be administered by the public and ensures the stability of the project with the tokens earned.
When a project revolves around a governance token, holders of the tokens can vote on potential events that could change the trajectory of the protocol. A governance token empowers the public to determine the direction of the project.
“Having proven its product market suitability for highly decentralized financial infrastructure with an independently evolving platform, Uniswap is now particularly well positioned for community-led growth, development and self-sustainability,” said the Uniswap team.