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.