I've been keeping a close eye on UNI's value capture lately.
On October 5, another Uniswap governance proposal was executed, preparing to extend the protocol fee and UNI burn mechanism to the Arc chain.
I think this is worth watching.
When I researched UNI before, my biggest question was:
As a trading protocol, no matter how big Uniswap gets or how high its trading volume grows, how much value will ultimately make its way back to the UNI token?
That path is now gradually taking shape.
But I wouldn't consider a proposal passing to be major bullish news on its own.
Establishing the mechanism is one thing; how much in fees it actually generates and how much UNI ultimately gets burned are another.
What I want to see next is the actual trading volume and protocol revenue after Arc launches, as well as how much value ultimately flows back to UNI through burns.
For UNI, long-term value isn't just about how large trading volume gets; it's about how much value the token can truly capture.
That's something I've always paid close attention to when researching DeFi projects.
$UNI #uniswap #DeFi
On October 5, another Uniswap governance proposal was executed, preparing to extend the protocol fee and UNI burn mechanism to the Arc chain.
I think this is worth watching.
When I researched UNI before, my biggest question was:
As a trading protocol, no matter how big Uniswap gets or how high its trading volume grows, how much value will ultimately make its way back to the UNI token?
That path is now gradually taking shape.
But I wouldn't consider a proposal passing to be major bullish news on its own.
Establishing the mechanism is one thing; how much in fees it actually generates and how much UNI ultimately gets burned are another.
What I want to see next is the actual trading volume and protocol revenue after Arc launches, as well as how much value ultimately flows back to UNI through burns.
For UNI, long-term value isn't just about how large trading volume gets; it's about how much value the token can truly capture.
That's something I've always paid close attention to when researching DeFi projects.
$UNI #uniswap #DeFi