One of the things that made Uniswap unique was the fact there was no underlying token. As of today, Uniswap officially launched their “UNI” DAO token.
The token acts as a governance tool allowing community members immediate ownership of the following: Uniswap governance, UNI community treasury, The protocol fee switch, ETH ENS, Uniswap Default List (tokens.uniswap.eth), and SOCKS liquidity tokens. Was launching this token a good idea, or bad?
Community governance is a great idea, don’t get me wrong. The problem is by creating the UNI token, the team has essentially “gone public” which allows for high levels of speculation. With speculation – you have greed. One of the primary reasons why Uniswap was able to achieve such greatness is because the LACK of speculation. This allowed the team to focus on the tech, and not the price. It removed the ability for whales to manipulate the underlying asset’s value. Now… that value is on the table for all to speculate on.
UNI, The Next CRV.
CRV peaked at around $50.00 and has been flat lining around $2.00-$1.00 ever since. Hopefully Uniswap doesn’t crash and burn like CRV. Keep in mind, CRV launched with a metric truck ton of hype, as Uniswap is currently.
Another similarity between CRV and UNI is the inflation model. Coingecko estimates 52.3m coins are in circulation, with an immediate available supply of 300m~. There are still 250m~ coins that have yet to be claimed by liquidity providers. This release of claimable tokens to the LP + the inflation model makes me believe we will see similar price action to CRV.
Uniswap’s Hand Forced
Sadly, it seems as if Uniswap had their hand forced. With SushiSwap vampire attacking their liquidity network, the UNI token launch appears to be a calculated response. Crypto is still in the middle-ages, everyone clearly fighting for the crown. Uniswap has been one of the most promising projects yet, hopefully greed & speculation don’t ruin that…