Decentralized Economy (DeFi) platform Uniswap’s management protocol token UNI went live on Ethereum earlier today. The community showed immediate support for the new token with Uniswap’s Twitter announcement, which garnered over 1.2 thousand likes in the first 90 minutes.
150 million UNI, or 15% of token delivery, is now available to be claimed by anyone who has used the platform. Synthetix founder Kain Warwick called the move a “galaxy brain movement” and added that it would be “the best token distribution we’ve ever seen.”
By the time the news went viral, 13,000 Uniswap users had already claimed their 400 free tokens in the first three hours ̵
Three Arrows Capital CEO and co-founder Su Zhu shared Uniswap’s post, adding:
Love it. Before Synthetix and Ampleforth, whales became the biggest uni simps ever.
Binance quickly announced that it would list the UNI token about 60 minutes after Uniswap’s official announcement. This is despite – or perhaps because – Binance recently received strong criticism for listing competitor SUSHI just days after the official announcement. KuCoin and FTX have also announced support.
Some in the community believe that this is a massive blow to Sushiswap, which has tried to attract Uniswap’s liquidity by offering great rewards of its own SUSHI token. Co-founder and CEO of BitMEX’s parent company 100x Arthur Hayes said, “My Sushi is spoiled, I have to do it back at UNI,” with another Twitter user called m2lower simply saying “DeFi war.”
Popular Youtuber, Lark Davis commented: “Oh s ** t !!!! Sushi is in big trouble. ”
The recent launch of competing automated market maker protocol Sushiwap saw it successfully migrate a significant portion of Uniswap’s liquidity and volume into a ‘vampire’ attack. Uniswap’s total locked-in value (TVL) fell from $ 1.72 billion to $ 518 million in 48 hours from September 7 to September 9. But Uniswap quickly regained the lead, briefly rising to over $ 1 billion on September 10 and currently sits at $ 926 million.
Over the next four years, 1 billion UNI tokens will be released. Of the one billion tokens, 60% goes to community members, while the remaining 40% goes to team members, investors and advisers with a vesting period of up to four years. After four years, the token will have an inflation rate of 2% annually.
The 150,000,000 UNI tokens released immediately will be distributed to “historical liquidity providers, users and SOCKS acquirers / holders” based on a snapshot taken on 1 September.
Tokenet facilitates community management for Uniswap forward with the official announcement of:
The introduction of UNI (ERC-20) serves this purpose and enables joint community ownership and a vibrant, diverse and dedicated system of government that will actively lead the protocol towards the future.
Compound’s management system contracts govern Uniswap’s management protocol. Compound CEO and founder Robert Leshner called this combination of technologies “a benefit of open source, compatibility and community tools.”
Although Uniswap management will be live immediately, community control over the Treasury will be delayed by 30 days, and the Uniswap fee shift for 180 days.
In the initial management phases, any token holder can submit a governance proposal if they delegate 10,000,000 UNI tokens or 1% of the total UNI supply.
Before implementing any proposal, the community is encouraged to “consult knowledgeable legal and legislative professionals” to ensure that all “governance decisions are made in accordance with applicable laws and regulations.”
At the time of press release, there are 13,314 addresses containing UNI tokens with over 44,000 transactions already confirmed – i.e. an average of 4 transactions per Second since the announcement. The price has risen over 90% to $ 3.36.