Understand the issuance price and total issuance of UNI coins in one article

The initial issuance of UNI tokens at $0.0157 per token through a decentralized exchange offering (DXO) led to a surge in demand and price due to the low price and large allocation to users (60%).

Sep 30, 2024 at 10:53 am

Understanding UNI Token's Issuance Details

1. Issuance Price

UNI tokens were initially offered through a decentralized exchange offering (DXO) on September 18, 2020.
The initial issuance price was set at $0.0157 per UNI token.

2. Total Issuance

The total supply of UNI tokens is capped at 1 billion tokens.
Of these, 60% (600 million tokens) were allocated to users through the DXO.
The remaining 40% (400 million tokens) are allocated to ecosystem development, team members, and advisors.

3. Token Distribution

DXO Distribution (60%): 600 million UNI tokens were distributed to participants in the DXO based on their contributions.
Ecosystem Development (17.5%): 175 million UNI tokens are reserved for Uniswap ecosystem development initiatives.
Team and Advisors (21.5%): 215 million UNI tokens are allocated to team members and advisors in recognition of their contributions.
Community Fund (1%): 10 million UNI tokens are reserved for community-driven initiatives and grants.

4. Vesting Schedule

The team and advisors' tokens are subject to a four-year vesting schedule, with 25% released per year.
The ecosystem development and community fund tokens have no vesting period.

5. Impact on Initial Issuance

The low initial issuance price of UNI tokens and the large allocation (60%) to users through the DXO led to a significant surge in demand and price shortly after launch.

6. Benefits of Token Issuance

The issuance of UNI tokens provided several benefits to the Uniswap ecosystem:

Community Ownership: Users who participated in the DXO gained a stake in Uniswap's governance and future.
Incentivization: UNI tokens incentivize participation in Uniswap's liquidity pools and the broader ecosystem.
Decentralization: The widespread distribution of UNI tokens helps decentralize Uniswap's ownership and decision-making.

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