Cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) have been soaring recently, and Uniswap (UNI), the governance token of decentralized exchanges, has also performed very strongly recently, with prices soaring to the highest point in the past two years.
Uniswap is currently the largest decentralized cryptocurrency (DEX), and Uniswap's initial token UNI gives the exchange certain governance rights and can vote on Uniswap's proposals or make direction proposals for future development.
At the time of writing, the currency price of UNI was US$14.98. In the past 24 hours, trading volume increased by 6%, and the market capitalization also reached $8.9 billion, making it the 17th largest cryptocurrency by market capitalization.
In order to promote community participation, the Uniswap Foundation recently proposed a fee-sharing initiative, hoping that UNI token holders can obtain a certain amount of fee-sharing after pledging and entrusting the tokens they hold.
This move quickly gained support from the majority of the community because it can significantly enhance the Uniswap governance structure and allow UNI token holders to play an active role more effectively in the decision-making process.
According to the Uniswap Foundation, the voting event started on March 1 and received strong support from the community. As of the trend on March 7, 55 million UNI has voted 100% in agreement.
Why is the community opposed to the new UNI token proposal?
While most of the community generally supports the proposal, data from blockchain analytics platform Lookonchain shows that large whales have emerged in the past 48 hours and collected more than $12.5 million worth of UNI tokens.
Uniswap's network activity has also been increasing recently, with the number of daily users increasing from approximately 75,000 in October 2023 to 168,106 on March 2. These data can be seen that the adoption rate of the Uniswap ecosystem is increasing by a quarter, which is the focus of the second drive to promote demand for UN tokens.
An important part of the community is looking forward to this initiative and believes it may bring some risks.
Some liquidity providers believe that this plan is unfair because the pledgers do not bring any help to liquidity and can also share the benefits at the same time. In addition, some community users believe that token holders can effectively obtain profit sharing, and the UNI token is likely to be classified as a contemporary unregistered security by US regulatory authorities, bringing certain risks to the project.
As competition within the Ethereum ecosystem gradually intensifies, the smart contract chain outside the Ethereum ecosystem has also joined the battle for market maintenance and carve-up. For now, the benefits of holding UNI tokens are not very clear.
In any case, Uniswap plays a key role in the Ethereum ecosystem, and for users, it is still worthy of considerable attention for the time being.
Again, investment in the currency circle does not rely on chasing highs and falling. What matters is news and feelings about market sentiment, and what is more, being able to get first-hand news about the project. Therefore, you can only see the benefits that others have been waiting for for a long time after the market moves. How to eat meat? Follow Yumo and share the daily contract spot password and bull market 100x coin layout for free.
