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In just four months, Uniswap, which has achieved liquidity from zero to US$2 billion, officially released the protocol token UNI. The official blog post detailed UNI’s token distribution, unlocking cycle, inflation model, and liquidity mining.
Written by: Vincent
On September 17, Beijing time, Uniswap officially announced the official release of the agreement token UNI.
As the main platform for obtaining ERC-20 DeFi tokens, its popularity and usage have surged after its launch. In just four months since May, Uniswap’s total liquidity started from zero, and it soared to the US$2 billion level. However, with the emergence of a series of forked projects, the official issuance of native tokens to provide incentives was finally put on the agenda. On September 9th, the image in a tweet by Uniswap founder Hayden Adams had “clearly stated” the currency issuance plan.
Today, Uniswap officially released various details of the UNI token in the blog post. The chain news has been translated and organized. The full text is as follows:
- UNI contract address: 0x1f9840a85d5aF5bf1D1762F925BDADdC4201F984;
- 60% of the initial supply of UNI will be allocated to Uniswap community members, of which a quarter (accounting for 15% of the total supply) will be allocated to “old users”;
- At the beginning, four liquidity pools can participate in UNI liquidity mining, and UNI holders can vote after the 30-day governance grace period ends to add more liquidity pools.
Since its establishment, the Uniswap protocol has always adhered to the original intention of creating a trustless and highly decentralized financial infrastructure.
So far, Uniswap has completed the exchange of assets worth more than 20 billion U.S. dollars, more than 250,000 effective addresses have been traded on the Uniswap platform, and the types of assets traded have reached 8,484. More than 49,000 addresses have provided a total of 1 billion U.S. dollars in liquidity on the platform, and the total amount of liquidity rewards has reached 56 million U.S. dollars. In addition, Uniswap has been integrated by hundreds of applications and has become a real DeFi infrastructure.
The introduction of UNI token is to allow the community to further dominate the next development of Uniswap, to help the platform achieve community governance and gain more vitality from the community. Uniswap has always adhered to the tenet of neutrality and minimization of trust, and only imposes governance constraints on the most critical links. Therefore, Uniswap’s governance framework will focus on the development and use of protocols and building a broader Uniswap ecosystem. UNI will become an important means for the self-government of the Uniswap community.
UNI token distribution
The initial casting volume of UNI is 1 billion, and the initial supply will be distributed in the next 4 years, of which:
- 60.00% distributed to Uniswap community members [600,000,000 UNI]
- 21.51% distributed to team members [215,101,000 UNI]
- 17.80% distributed to project investors [178,000,000 UNI]
- 0.69% distributed to project consultants [6,899,000 UNI]
After 4 years, UNI will start a continuous inflation of 2% per year to ensure that there is a sufficient amount of UNI to motivate users who participate and contribute to the development of the project.
Token distribution after 10 years (calculating inflation)
Give back to “old users”
Uniswap’s success is attributed to the thousands of community members who have participated in its journey over the past two years. These early community members are very precious to Uniswap. Therefore, the team will provide 15% of the total circulation of UNI[150,000,000 UNI] based on the results of the snapshot on September 1, 2020 (users who have participated in liquidity provision, transaction, and held or redeemed SOCKS) directly distributed to these users .
A total of 49,192 liquidity providers will allocate 4.92% of the total circulation [49,166,400 UNI];
A total of 251,534 historical user addresses will be equally allocated 10.06% of the total [100,613,600 UNI], and each address that has ever traded in Uniswap v1 or v2 can receive a reward of 400 UNI;
A total of 220 SOCKS redemptions/holders will allocate 0.02% of the total [220,000 UNI]. Every address that has redeemed SOCKS or has at least one SOCKS before the snapshot can receive a reward of 1000 UNI.
In addition to the 15% of the total tokens allocated to old users, the governance vault will retain 43% of the total supply of UNI [430,000,000 UNI]. This ensures the smooth progress of other distribution plans such as donations from contributors, community initiatives, and liquidity mining.
The UNI governing the treasury will be gradually unlocked in the next four years. The unlocking time will officially begin at 20:00 on October 18, 2020, Beijing time.
- 40% of the reserved total will be unlocked in the first year [172,000,000 UNI]
- 30% unlocked in the second year [129,000,000 UNI]
- Unlock 20% in the third year [86,000,000 UNI]
- Unlock 10% in the fourth year [43,000,000 UNI]
In addition, the tokens reserved by the team and allocated by project investors and consultants will be gradually released in the same proportion in the next four years.
UNI’s initial liquidity mining plan will be officially launched at 20:00 on September 18, 2020 Beijing time. The first phase will run until 20:00 on November 17, 2020 Beijing time. The four liquidity pools of ETH/USDT, ETH/USDC, ETH/DAI and ETH/WBTC on Uniswap v2 will support UNI mining.
In the first stage, each fund pool will receive a total of 5,000,000 UNI, which will be allocated to liquidity providers in proportion to the provision of liquidity. That is, each pool will be allocated 83,333.33 UNI rewards per day. There will be no lock-up period for this part of the rewarded UNI.
After 30 days, the voting governance of the project will be officially launched. UNI holders can vote to decide whether to add other liquid capital pools for liquidity mining and other governance plans.
The agreement governance is now in effect, and the 180-day grace period will provide the Uniswap community with enough time to become familiar with the governance system, and to discuss and exchange potential governance suggestions.
The governance rights owned by the holders of the governance token UNI include Uniswap governance rights, UNI community treasury, protocol fee conversion, Ethereum ENS (Ethereum Domain Name Service), Uniswap default list (tokens.uniswap.eth), and SOCKS liquidity tokens .
Initial governance parameters:
- 1% of UNI supply is required for authorization
- 4% of UNI supply voted yes
- Seven-day voting period
- Two days after the voting ends
In addition, the Uniswap team will still not participate in the development, audit and other matters of the v2 protocol. Similarly, in the future, team members will not directly participate in governance, but will delegate voting rights to agreement representatives.
What can be done next?
- All old users can now get UNI rewards
- The liquidity providers of the four pools that support the first phase of liquidity mining can obtain UNI rewards by providing liquidity
- You can use UNI for governance voting
- You can create an account on gov.uniswap.org to participate in agreement management