UNI is the governance token of the Uniswap protocol.
UNI is a mid-cap asset that represents the protocol's native governance or utility token. This asset is exposed to the underlying risks of Uniswap and Arbitrum bridge, which are protocols rated as Best in Class and Moderately Risky, respectively. UNI is the governance token of the Uniswap protocol, and its sole utility is voting rights over the protocol decisions. The asset has an uncapped supply.
UNI is highly correlated to the overall market.
UNI is the governance token for the Uniswap protocol. The primary use for UNI is to govern the future direction of the decentralized exchange. In the future, token holders may vote to turn on a protocol fee switch for certain pools to redistribute a portion of swap fees back to UNI. Other uses for the the UNI token includes managing the UNI community treasury, determine the tokens that belong on the Uniswap default list, and ownership of the Uniswap ENS domain name.
The total supply of UNI is initially capped at 1B tokens. These tokens will become available over the course of four years, after which Uniswap will become inflationary via introduction of a 2% perpetual inflation rate to maintain network participation. The token supply distribution consists of 60% reserved for the community, 21.5% to the team, 17.8% to investors and 0.7% to advisors.
The ongoing success and adoption of Uniswap products is expected to accrue value to token holders through positive price impacts. If the protocol fee switch is turned on, this will further benefit UNI holders as a portion of trading fees are redistributed back to token holders.