UNI Token

November 21, 2023 - Around 2 mins mins to read

Understanding UNI Token

The UNI Token serves as the native governance token for Uniswap, the largest decentralized exchange currently in operation. Holding UNI tokens grants individuals governance rights, enabling them to actively participate in the decision-making process for the platform’s development. Moreover, UNI holders also benefit from the increasing value of this decentralized exchange over time.

Investors have the opportunity to contribute to liquidity pools that support Uniswap, which in turn offers attractive returns in the form of UNI tokens.

The total supply of UNI tokens is set at 1 billion units. By 2024, the entire supply will be in circulation, following a four-year vesting schedule. After this period, a perpetual inflation rate of 2% will be applied annually to the UNI token to ensure network participation. The perpetual inflation rate serves the purpose of discouraging passive holders.

To purchase or trade UNI tokens, individuals can utilize major exchanges that offer trading against other cryptocurrencies, fiat currencies, and more. Some of the exchanges where UNI tokens are available include Binance, Huobi, Uniswap, and Coinbase.

Understanding Uniswap

Uniswap is a well-known decentralized exchange that facilitates the trading of ERC-20 tokens. This protocol supports the exchange of various tokens that adhere to the ERC20 standard on the Ethereum blockchain.

One crucial factor contributing to the increasing value of UNI tokens and Uniswap is the 24-hour trading volume. This healthy indicator attracts investors who are interested in joining this rapidly growing platform. However, it is important to note that like any investment, there are associated risks with Uniswap.

Glossary

UNI Token

Understanding UNI Token

Investors have the opportunity to contribute to liquidity pools that support Uniswap, which in turn offers attractive returns in the form of UNI tokens.