Uniswap’s very own native token Uniswap (UNI) has hit the $140 million market capitalization, 7 hours after its launch. It is currently trading at $3.46 per piece, according to CoinGecko.
The crypto community met the popular DeFi protocol’s UNI launching with exhilaration and frenzy, as premier crypto exchange Binance listed the token one hour after it became available to the public, seemingly without any hesitation.
UNI has a maximum supply of 1 billion tokens which will be released in the next four years. According to an announcement by the Uniswap team, 60% of the UNI genesis supply has been allocated to the Uniswap community; 15% of which has already been given out to past users.
The remaining 40% of the total supply will be given to members of the Uniswap team (21.51%), as well as to the investors (17.8%) and the advisors (0.069%).
Aside from becoming a speculative asset, UNI’s function is to become a governance token for the Uniswap protocol. It will also be distributed through contributor grants, liquidity mining, community initiatives, and more.
The Uniswap team added,
Uniswap has set the standard for automated liquidity provision: it is now time to set the benchmark for responsible but radical, long-term aligned on-chain governance systems.
Uniswap admitted that they were “inspired by Ethereum’s vision” to be a fully-decentralized protocol. As such, the team has already given the governance responsibility to UNI holders during its launch. Moreover, they will hand over the control of the treasury on October 17, 2020.
The team also reiterated that they will have no involvement in the v2 protocol development, audit, and governance, even though they may delegate votes to protocol representatives “without seeking to influence their voting decisions”.