The information about the Uniswap (UNI) token is as follows: UNI is an ERC-20 token launched on the Ethereum blockchain, serving as the native governance token of the Uniswap protocol, a leading decentralized exchange (DEX) and automated market maker (AMM). The protocol was created by Hayden Adams and launched on November 2, 2018, with the UNI token introduced on September 16, 2020. Unlike traditional exchanges, Uniswap uses liquidity pools and smart contracts to facilitate trustless, peer-to-peer trading of Ethereum-based tokens without intermediaries, relying on a constant product formula (x * y = k) to determine pricing. The UNI token was designed to formalize community ownership and governance of the protocol, with a total supply of 1 billion tokens minted at genesis. Of this, 60% was allocated to community members, 21.51% to team members, 17.8% to investors, and 0.69% to advisors, with the latter three categories subject to a four-year vesting schedule. After four years, a 2% annual inflation rate will be introduced to sustain network participation.

UNI’s primary function is governance, enabling holders to vote on proposals affecting the protocol, such as upgrades, fee structures (e.g., the potential fee switch), and treasury allocation, managed by the Uniswap DAO. The token’s launch included a notable airdrop, distributing 400 UNI tokens to each Ethereum address that had interacted with Uniswap’s v1 or v2 contracts before September 1, 2020, including liquidity providers and even users with failed transactions. This airdrop, totaling 150 million UNI, aimed to reward early adopters and decentralize ownership. Beyond governance, UNI holders can delegate voting power and participate in shaping the ecosystem, which spans Ethereum and additional EVM-compatible chains like Polygon, Optimism, and Binance Smart Chain. Posts on X and web sources emphasize Uniswap’s role as a cornerstone of decentralized finance (DeFi), pioneering the AMM model that other DEXs have since adopted.

The Uniswap protocol operates through multiple versions—v1 (2018), v2 (2020), and v3 (2021)—each enhancing functionality, such as enabling ERC-20-to-ERC-20 swaps and improving capital efficiency. UNI is not required to trade on the platform but unlocks governance rights and community benefits. The token is supported by Uniswap Labs, founded by Adams in New York, which received backing from investors like Andreessen Horowitz and Paradigm. Additionally, Uniswap has expanded with Unichain, an Ethereum Layer-2 solution launched in October 2024, aimed at reducing fees and improving transaction speeds while maintaining decentralization. UNI’s smart contract, written in Solidity, ensures compatibility with Ethereum’s ecosystem, and its open-source nature allows for forks and broader DeFi integration, cementing its status as a foundational infrastructure for decentralized trading.