[ccpw id="5"]

HomeCoinsOther coinsUniswap: why is the UNI token up 40% over the week?

Uniswap: why is the UNI token up 40% over the week?

-

The price of the UNI token, emblematic of the Uniswap decentralized exchange (DEX), has risen spectacularly after a lull of almost 2 years, reaching over $11. What caused UNI to rise so suddenly?

The Uniswap DEX token returns to the spotlight
After almost 2 years of dormancy, the price of the UNI token has suddenly awakened to the point of exceeding $11. Indeed, after falling below $6 in May 2022 (when Terra fell), the token of the decentralized Uniswap exchange had seen very few rebounds to date.

With over $5 billion in total locked value (TVL) at the time of writing, Uniswap is by far the largest DEX, accumulating more than double the liquidity of its main rival in this market section, Curve.

Created in 2018, Uniswap is a native Ethereum blockchain protocol for buying and selling cryptocurrencies, and today ensures a presence on 13 blockchains, including layer 2 and Ethereum Virtual Machine (EVM)-enabled networks. To find out more about this key decentralized finance (DeFi) protocol, we invite you to read our dedicated Uniswap factsheet.

👉 Find out more – What is a DEX (decentralized exchange) in crypto?

Since its inception, Uniswap has handled over $1,800 billion in volume. And yet, its token, UNI, had so far struggled to keep pace with the rising market. So what has prompted this sudden surge?

Why has the price of the UNI token suddenly soared?

The reason for this increase is actually quite simple: a governance proposal for DEX was submitted by Erin Koen, head of the Uniswap Foundation, with a view to rewarding investors who staked their UNI tokens.

It should be noted that, at the time of writing, the proposal in question is only at the stage of informal evaluation of the general state of the community. In other words, it has yet to be submitted to a preliminary vote, which will precede a final vote by UNI token holders.

👉 In related news – DeFi: Aave joins BNB Chain and integrates fdUSD into V3 of its protocol

According to the proposal, less than 10% of UNI tokens currently in circulation are currently being used in the project’s governance process. And since it is precisely staking that enables voting, the idea would be to encourage UNI token holders to delegate their tokens in order to optimize the project’s growth via its governance system.

If accepted by the project’s Decentralized Autonomous Organization (DAO), this innovation would be brought to life through 2 new smart contracts responsible for calculating and then redistributing the fees collected by Uniswap to users who have staked their tokens on the basis of a pro rata calculation.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

LATEST POSTS

White Rhinoceros WHRH – Next Gem in Ethereum Blockchain

Cryptocurrency enthusiasts, brace yourselves for a groundbreaking venture into the world of WHRH—a unique project that skillfully intertwines MEME and payment tokens. At the core...

What is Chiliz CHZ used for?

Cryptocurrency enthusiasts and sports fans alike have found a fascinating intersection in the form of Chiliz (CHZ) and its innovative approach to merging blockchain technology...

Monero: Unveiling the Power of Privacy in Cryptocurrency

In the dynamic realm of cryptocurrencies, where transparency and decentralization often take center stage, Monero (XMR) emerges as a unique player, placing privacy and anonymity...

Polkadot in 2024: Price prediction

In mid of a surging bull run that has revitalized the cryptocurrency market in recent weeks, innovative projects like Polkadot are taking center stage. This...

Most Popular

spot_img