Users of the leading decentralized exchange, Uniswap, announced an “unofficial community chat” planned for Nov. 12 at 5:00 pm UTC. The call is scheduled to discuss several important governance problems that are vital to Uniswap, including the future of its liquidity mining scheme.
The agenda of the meeting is as following:
- Code of conduct for meeting: based on these community guidelines 11
- Summary of uniswap proposals 1 and 2
- Brief content overview for each proposal
- Final vote/quorum results
- Uniswap’s community governance process
- Overview of current process 9
- General discussion: questions about process, suggesting improvements, etc
- Liquidity mining
- Overview of current program 36 (ending on 11/17)
- Discussion for extending existing program or starting revised program
- Other projects / integrations
- Compound: cUNI voting 6 with Snapshot polling
- MakerDAO: UNI 1 and ETH/USDC 1 + ETH/DAI 3 LP tokens as collateral
- Open discussion: anything else we want to talk about!
In mid-September, after a slew of rival DEX clones attempted to siphon away Uniswap’s users by exorbitant native token offers to liquidity suppliers during the DeFi boom, Uniswap retroactively airdropped its native token UNI to customers and launched its own liquidity mining scheme.
Finding a Solution to UNI Inflation
Uniswap’s latest liquidity mining system is set to end on Nov. 17, with a call scheduled to determine whether to proceed or revise the policy in effect. A total of 5 million UNI was allocated for airdrops to liquidity providers under the initial plan, equal to 83,333 daily tokens.
Some say that the UNI airdrop and liquidity incentives scheme supported the exchange to maintain its position as the leading DEX in the face of numerous “vampire attacks.”
Nevertheless, the scheme may now have a negative influence on the Uniswap governance token’s business performance, with the compensation program declining more than $260,000 worth of regular tokens at the current price of $3.13 each.
With liquidity mining scheme stories helping to drive a rally to a high of almost $8 within three days of the launch of the coin, UNI began selling for approximately $3.
However, UNI steadily dropped from Sept. 19 through early November to record an all-time low of $1.80 on Nov. 5.
Details of UNI Liquidity Mining
Liquidity mining went live on 18 September 2020 at 12:00 UTC. The mining period will run until 12:00 a.m. UTC on 17 November 2020 and targeted these Uniswap v2 pools:
- USDT / ETH
- USDC / ETH
- DAI / ETH
- WBTC / ETH
Per pool, 5,000,000 UNI would be assigned to LPs relative to liquidity, which translates approximately to:
83,333 UNI a day in a pool
13.5 UNI per block per pool (14s blocktime)
These UNIs are not immune to lock ups or vesting.
Governance will hit its vesting cliff after 30 days and Uniswap governance will administer all UNI vests to the treasury of Uniswap.
Governance will vote at this level to delegate UNI to loans, strategic alliances, governance projects, new pools of liquidity mining, and other services.
The UNI Token’s Total Allocation
1 billion UNI have been minted at genesis and will enter circulation over the course of 4 years. The initial four year allocation is as follows:
60.00% to Uniswap community members 600,000,000 UNI
21.266% to team members and future employees with 4-year vesting 212,660,000 UNI
18.044% to investors with 4-year vesting 180,440,000 UNI
0.69% to advisors with 4-year vesting 6,900,000 UNI
A perpetual inflation rate of 2% per year will start after 4 years, ensuring continued participation and contribution to Uniswap at the expense of passive UNI holders.
By holding UNI, users have the following privileges:
- Uniswap governance
- UNI community treasury
- The protocol fee switch
- uniswap.eth ENS name
- Uniswap Default List (tokens.uniswap.eth)
- SOCKS liquidity tokens
