What Is a UNI Token?
The UNI token is the native governance token of Uniswap, currently the most prominent decentralized exchange.
Holding UNI tokens grants you governance rights, allowing you to participate in the voting process for decisions related to the platform‘s evolution.
As a UNI holder, you also benefit from the increasing value of the decentralized exchange (DEX) over time.
Investors can contribute to liquidity pools to support Uniswap, which offers attractive returns in UNI tokens.
UNI Token Supply and Inflation
The maximum supply of UNI tokens is 1 billion units.
This supply will be circulated by 2024, as the project follows a four-year vesting schedule.
After this period, a perpetual inflation rate of 2% will be applied to the UNI token to incentivize network participation.
The inflation rate will be applied annually starting from September 2024. The perpetual inflation rate also serves the purpose of discouraging passive holders.
What Is Uniswap?
Uniswap is a widely used decentralized exchange (DEX) that facilitates the trading of ERC-20 tokens.
The protocol supports the exchange of multiple tokens adhering to the ERC20 standard on the Ethereum blockchain.
A significant factor contributing to the increasing value of the UNI token and Uniswap is the 24-hour trading volume.
This robust trading volume attracts investors interested in the platform’s growth. However, it’s important to note that associated risks are involved like any investment.