Uniswap
Crypto Overview
Understanding the Intended Utility
Uniswap (UNI) is a governance token for the Uniswap protocol, which is the largest decentralized exchange (DEX) on the Ethereum blockchain. The token provides holders with voting rights to participate in the protocol's governance decisions, including fee structures, protocol upgrades, and treasury management. UNI was launched in September 2020 with 60% of the initial supply distributed to community members who had previously used the protocol.
Business Model & Current Usage
The Uniswap protocol generates revenue through trading fees (0.3% per trade), with 0.05% going to UNI token holders since the implementation of the fee switch in Q4 2023. The protocol's primary function is facilitating decentralized token swaps through automated market maker (AMM) technology. As of 2024, Uniswap has processed over $1.5 trillion in trading volume and maintains approximately $3 billion in total value locked (TVL).
Token Distribution and Governance
The total supply of UNI is 1 billion tokens, with the following distribution: 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). The vesting schedule helps align long-term interests and prevents immediate selling pressure.
Development Activity
Uniswap Labs maintains active development with regular protocol upgrades. The latest version, Uniswap v4, introduces new features for capital efficiency and customization. The protocol has a strong developer community and has been audited by multiple security firms.
Crypto Impact
To assign a comfort level investing in Uniswap 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 Uniswap.
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.