UNI Token Definition
The UNI token is a governance token for the Uniswap protocol, one of the most significant decentralized applications (dApps) in the world of decentralized finance (DeFi). Holders of UNI tokens essentially own a piece of the Uniswap exchange and have voting rights over the development and future of the platform.
UNI Token Key Points
- The UNI Token is associated with the Uniswap protocol, used within the Ethereum blockchain.
- UNI tokens give holders the rights to govern the Uniswap protocol, making decisions regarding its development.
- They grant holders voting rights proportional to the amount of UNI tokens they own.
- UNI tokens are an example of the power of community governance in DeFi.
What is the UNI Token?
UNI token is the governance token launched by Uniswap, an automated liquidity protocol built on Ethereum. This is a revolutionary element within the decentralized finance (DeFi) because it empowers users to influence decisions about how the platform evolves.
Who uses the UNI Token?
The UNI token is used by holders who have an interest or stake in the Uniswap platform. This includes traders, liquidity providers, investors, or anyone else who wishes to contribute to the governance and future of the protocol.
When was the UNI Token launched?
The UNI token was launched on September 16, 2020. The Uniswap team initiated a surprise airdrop to its user base, giving out a significant amount of UNI tokens.
Where can you get UNI Tokens?
UNI tokens can be attained in several ways. One way is by trading for them on the Uniswap exchange or other cryptocurrency exchanges. Another way is by providing liquidity to the Uniswap protocol, which rewards contributors with UNI tokens.
Why does the UNI Token exist?
The UNI token exists to decentralize control over the Uniswap protocol. It is a tangible way to put the platform’s decision-making power into the hands of its users. This measure ensures that the community can vote on and influence important parameters and development plans.
How does the UNI Token work?
A UNI holder possesses a vote in the governance of Uniswap proportional to the amount of UNI they hold. Decisions that can potentially alter facets of the platform are put up for votes, and holders can either delegate their votes or participate directly. Proposals that receive enough votes and meet other criteria are then implemented in the protocol.
