Uniswap recently passed a governance proposal that requires the sale of 10.68 million UNI tokens in order to allocate approximately US$46.2 million to maintain the Uniswap Foundation's operations for two years.

The revenue from the previously launched 0.15% front-end interface fee is used for the daily operations of Uniswap Lab:

(Uniswap will start charging "interface fees" tomorrow! Specific currency transactions will be charged 0.15%, front-end users only)

Sold UNI, US$40 million to maintain Uniswap Foundation operations for two years

According to the Uniswap Foundation announcement, the Uniswap Foundation’s governance proposal for two years of operating capital of approximately US$46.2 million has been approved.

Funds will be used for long-term development, maintenance, and improvement of the Uniswap protocol.

The funds come from the sale of the governance token UNI, which means that approximately 10.68 million UNI tokens need to be sold.

Uniswap first proposed the idea of ​​forming a foundation in August 2022:

(Uniswap plans to form a physical foundation with a three-year budget of US$70 million, and the community’s opinions are polarized)

Three million UNI transferred to the exchange

On-chain analyst Ember tracked Uniswap’s currency transfer process:

  • 10/21: The foundation’s custody address unlocked 10.68 million UNIs

  • 10/24: The escrow address transferred 3 million UNIs to the new address in batches

  • 10/25: 3 million UNI have been transferred to the Kraken deposit address of market maker Wintermute

10 minutes ago, the 0xdFD address also transferred the remaining 1 million $UNI ($4.33M) to Wintermute’s Kraken exchange recharge address.

The 3 million UNI (13M) received by the 0xdFD address from the UNI Foundation escrow address today has all been transferred to Wintermute's Kraken exchange deposit address. https://t.co/L26I1UQD8n

Tweet sponsored by @Bitget_zh https://t.co/QwrIZE2Mrt pic.twitter.com/PqcN8DkdpB

— 余烬 (@EmberCN) October 24, 2023

Two-year working capital accounts for approximately 1% of UNI’s initial supply

The total supply of Uniswap's governance token UNI is 1 billion, and the distribution in the first 4 years is as follows:

  • 60% Uniswap community members

  • 21.51% team members

  • 17.80% Investors

  • 0.69% Consultant

This represents approximately 1% of the initial supply of UNI for two years of working capital for the foundation (10 million UNI).

In addition, UNI will be issued additionally, and starting from approximately 2024, there will be a permanent inflation rate of 2% per year.

UNI initial supply

This article proposal is approved! Uniswap will sell 10 million UNI tokens to maintain the foundation’s operations for two years. First appeared in Chain News ABMedia.

#Uniswap