Decentralized Exchange Uniswap Launches Governance Token Dubbed UNI

September 17, 2020 4:01 PM UTC

Earlier Today, a leading decentralized Exchange platform Uniswap has introduced its governance token entitled UNI. According to the report, the crypto community presented welcoming support to the new governance token. In the first couple of hours, Uniswap twitter announcement has received more than 1.2 thousand likes. 

Su Zhu, CEO of Three Arrows Capital, retweeted Uniswap post by adding comments:

“Love it. In before Synthetix and Ampleforth whales become the biggest uni simps ever.”

Uniswap is hoping that the UNI governance token will power it to lead the DeFi sector. The DEX platform faced massive liquidation after ‘Vampire Attack’ from SushiSwap. Uniswap total value lock plummeted to $518 million from almost $1.7 billion. Currently, Uniswap stands at second spot followed by its rival SushiSwap, as per the analysis of DeFi Pulse. 

Binance Announced to List Uniswap Governance Token

Observer’s the abrupt demand of Uniswap’s governance token. Binance quickly announced the listing of UNI tokens, despite the criticism that Binance faced for adding SUSHI just days after the official statement. Moreover, FTX and KuCoin also announced to offer support. 

Some crypto experts believe that the launch of UNI token is a huge setback to Sushiswap. Arthur Hayes, CEO of BitMEX parent firm 100x, passed the statement: “My Sushi is spoiled, I shall make it back on UNI,” m2lower, another Twitter user, posted a simple tweet, “DeFi war.”

According to a blog post, nearly one billion UNI tokens will be distributed as per decentralized exchange plans. Uniswap community members will receive 60% out of the total minted tokens. Whereas, the remaining 21.5% goes to Uniswap team members, and 18.5% will be located for investors. 

The announcement further states:

“Uniswap is now particularly well positioned for community-led growth, development, and self-sustainability. The introduction of UNI (ERC-20) serves this purpose, enabling shared community ownership and a vibrant, diverse, and dedicated governance system, which will actively guide the protocol towards the future.”

While the Uniswap announcement goes viral, Uniswap existing users rush to claim their 400 free tokens. The number of active addresses holding UNI tokens also surged significantly. There are more than 13000 addresses with over 42000 recorded transactions, at the time of reporting. However, the highly elevated interest for UNI slows down the Ethereum Network. Market data and industry analysis show that over $650,000 is paid on Uniswap and UNI transaction gas fees alone within 3 hours.

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