The aggressive activity to claim the new governance protocol token UNI, by DeFi users is an indication that Uniswap is taking the SUSHI head.
The decentralized finance platform Uniswap’s token went live on Ethereum earlier in the day. Its official announcement was made on Twitter, where is gained so much interest in minutes. In less than two hours, the post already has 1.2 thousand likes.
So far, 15% of the total token supply, an equivalent 150 million UNI, can be claimed by any user on the platform. The strategy was likened to a “galaxy brain move” by Sythetix founder Kain Warwick and will lead to the best token distribution ever.
With the news of free tokens, 13,000 Uniswap users have already claimed 400 free tokens in just three hours. The tokens are valued at $1344 per user. The mad rush for the tokens slowed down the whole Ethereum network leading to a rise in the transaction fees. So far, the amount of money spent on Uniswap is up to $650,000.
Just an hour after Uniswap’s official announcement, Binance offered to list the token on its platform. That raised eyebrows considering Binance was criticized for listing SUSHI, its competitor, a few days after the announcement.
Apart from Binance, Uniswap also got the support of KuCoin and FTX, which is a positive sign.
Some crypto enthusiasts believe that the move is a blow to SUSHI, which was eyeing to get liquidity of Uniswap so that it can fund its Sushi token.
The recent launch of the rival market maker protocol Sushiswap led to high migration of Uniswap’s liquidity and volume. That led to a drop in Uniswap’s total value locked (TVL) from $1.72 billion to $518 million in just two days. 10th September was a good day for Uniswap as it was able to recover to $1 billion, and it is currently at $926 million.
The company anticipates releasing 1 billion UNI tokens in the next four years. It plans to use 60% on community members and 40% on team members, investors, and advisors. After the four years, it expects to get an inflation rate of 2% per year.
The token’s main aim is to facilitate community governance for Uniswap, which can guide the protocol towards the future.
As much as Uniswap governance will take effect immediately, the community control over the treasury will be active after 30 days.