Author: Brother Future
Uniswap recently launched its own DEX governance token, UNI, which was previously dug out by Sushi and overtaken to force out the development speed. Now let’s analyze UNI’s token economy and governance model together.
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Total amount of UNI tokens distribution mode:
The initial total amount of UNI creation is 1 billion, and the initial amount will be distributed within the next 4 years. Among the 600 million tokens in the community, accounting for 60% of the total, 150 million tokens, accounting for 15% of the total, have been airdropped for use before 9.1 Old users in the community who have passed Uniswap, this airdrop to ordinary users, the peak value of 400 UNI in a single wallet is worth more than 10,000 yuan. The SOCKs class received airdrops exceeding 1000UNI.
The tokens of the team, investors and consultants will have a 4-year linear unlocking time, and a fixed inflation rate of 2% will be maintained after 4 years to maintain the health and stability of the ecology.
The figure below shows the release rate within 4 years: It can be seen that during the period from September 2020 to December 2021, the overall circulation release expansion rate is relatively high, and then decreases year by year and gradually decreases, and the slope decreases.
l The current circulation of UNI is about 170,000,000, and the circulation rate is about 17%.
l The circulating market cap is about 500 million U.S. dollars, and the average price is about $2.8-$3. (BJT 9-17 19:38)
l The rough circulation at the end of 2021 is about 550 million, compared with the current inflation rate of 223.52%
The community governance library will store approximately 430 million tokens for community rewards, development rewards, etc. The release rules are as follows:
The tokens of the governance library will be released at 12:00 UTC on October 18, 2020, which means that 172 million tokens in the community governance library will be released within one year from 2020-10-18 to 21-10-17 (accounting for 17% of the total, accounting for 106.8% of the current circulation).
Output of the first round of liquidity mining:
The time is from 20:00, September 18, 2020 to 20:00, November 17, 2020. The liquidity pools of the four trading pairs ETH/USDT, ETH/USDC, ETH/DAI and ETH/WBTC on Uniswap v2 will support UNI mining.
In the first stage, a total of 5,000,000 UNI was obtained (accounting for the total amount: 0.5%, accounting for the current circulation: 2.9%), each pool distributes an average of 83,333.33 UNI rewards per day, and each pool has 54 UNI per block.
This part of the rewarded UNI has no lock-up, that is, an average of 166666 UNI will be released every day (accounting for about 0.1% of the current circulation).
After 30 days, the voting function will be turned on to determine the next step of governance.
The main role is to provide liquidity for the fund pool and give mining rewards. At the same time, UNI also has a governance role. Governance rights mainly include Uniswap governance rights, UNI community library, Protocol conversion fees, Ethereum ENS, tokens.uniswap.eth and SOCKS Liquid tokens.
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Initial governance parameters:
1% of the total amount of UNI for proposals
4% of UNI supply voted yes
There is a 2-day delay in execution after voting closes
(These functions do not have much practical significance to investors who buy in the general secondary market, but more to the participants and liquidity providers in Uniswap’s ecological governance)
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Uniswap Token Economy Summary:
The current circulation of UNI is about 170,000,000, and the circulation rate is about 17%.
The circulating market cap is about 480-500 million U.S. dollars, and the average price is about $2.8-$3. (BJT 9-17 19:38)
At the end of 2021, the rough circulation is about 550 million, compared with the current circulation of 170 million, the inflation rate is 223.52%
The linear average monthly expansion rate within 1 year is about: 18.63%
The current enthusiasm for speculation is high, and major exchanges including coinbase pro have been launched one after another within a day, leading to a climax of speculation enthusiasm, and irrational speculation in the secondary market
Swap If high-quality swap appears on other public chains such as Algorand, Cardano, etc., whether the fast speed and low cost will be attracted by liquidity needs to be considered
References:https://uniswap.org/blog/uni/
▌Brief introduction of the author: Brother Future (Gengche)
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