Glossary

UNI Token

Easy

A native governance token of Uniswap, the largest decentralized exchange at the time of writing.

What Is a UNI Token?

Uniswap is currently the largest decentralized exchange with UNI as its native governance token. As a UNI holder, you gain the governance rights that enable you to participate in the voting process of decisions related to the evolutionary trajectory of the platform. UNI holders will also yield beneficial results from the growing value of DEX over time. 

Investors can contribute to liquidity pools to support Uniswap, an activity that offers good returns in the form of UNI tokens. 

The maximum supply of the UNI token is 1 billion units. The maximum supply will be in circulation by 2024, as the project has a four-year vesting schedule. After the completion of this period, there’ll be a 2% perpetual inflation rate applied to the UNI token for the sake of maintaining network participation. Starting from September 2024, this inflation rate will be applied annually. One of the purposes of the perpetual inflation rate is to disincentivize passive holders.

You can use major exchanges to buy or trade UNI tokens against other cryptocurrencies, fiat currencies, etc. It’s available on exchanges including Binance, Huobi, Uniswap, and Coinbase.

What Is Uniswap?

Uniswap is a popular decentralized exchange that facilitates ERC-20 tokens. The protocol supports the exchange of multiple tokens that use ERC20 standard on the Ethereum blockchain.

A critical factor in the rising value of the UNI token and Uniswap is the 24-hour trading volume. 

Considering this healthy indicator, investors would want to jump aboard this fast-moving train. Indeed, Uniswap is performing impressively, but it doesn’t rule out risks associated with any kind of investment.