The $UNI token is the native governance token of Uniswap, one of the most popular decentralized exchanges built on the Ethereum blockchain. Uniswap allows users to swap ERC-20 tokens without needing an intermediary or centralized exchange.
$UNI holders have the ability to participate in the governance of the Uniswap protocol by voting on proposals that affect the platform's future, including changes to the fee structure, liquidity pools, and protocol upgrades. Uniswap’s governance is decentralized, meaning that token holders collectively make decisions regarding the protocol’s development and improvements.
The $UNI token was launched in September 2020, and it was distributed to past users of Uniswap, liquidity providers, and other stakeholders as part of a wide airdrop. The token also serves as an incentive for liquidity providers on the Uniswap platform, rewarding them for contributing to the liquidity pools