UNI
Crypto Overview
Purpose and Utility
UNI is the governance token of Uniswap, the largest decentralized cryptocurrency exchange (DEX) on the Ethereum blockchain. Token holders can participate in governance decisions affecting the protocol's development and treasury management. The token was launched in September 2020, with a significant portion airdropped to early users of the platform.
Business Model Evaluation
Uniswap's core function is to facilitate peer-to-peer trading of cryptocurrencies using automated market maker (AMM) technology. The protocol enables direct asset exchange without intermediaries. While trading is the primary activity, the underlying technology serves a legitimate purpose in creating market efficiency and liquidity.
Real-World Adoption
Uniswap has demonstrated substantial adoption, consistently ranking as one of the most used decentralized applications. The protocol regularly processes billions in monthly trading volume and has over $3 billion in total value locked (TVL) as of 2024. The UNI token is actively used in governance, with regular proposal submissions and voting activity.
Development Activity
The project maintains strong development activity with regular updates and improvements. Uniswap V3 introduced significant technical innovations in AMM technology, and the team continues to develop new features and expansions to other blockchain networks.
Token Distribution
The initial distribution allocated 60% to community members, 21.51% to team members (4-year vesting), 17.8% to investors (4-year vesting), and 0.69% to advisors (4-year vesting). This distribution structure shows reasonable alignment with long-term project success.
Crypto Impact
To assign a comfort level investing in UNI from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to UNI.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.