Within only a few days after its launch, the Uniswap token has attracted a lot of interest. Now, founder of Yearn Finance Andre Cronje is putting himself up as one of the delegates for Uniswap community governance. Those with enough UNI tokens can submit their proposals to determine how the token will operate.
He has identified different problems with Uniswap that the platform’s governing body needs to address. The issues include the support levels for other projects and the revaluation of the UNI token’s distribution.
The launch of the UNI token was one of the biggest news within the cryptocurrency industry this week. Various Ethereum wallets received various UNI tokens on September 16. The move seemed to have drawn massive interest from the market, as the Uniswap token surpassed several established tokens in terms of interest from investors.
The UNI tokens were shared among Ethereum wallets that had previous interactions with the market making platform before September 1.
UNI’s price has increased exponentially
Earlier when those that claimed the free UNI tokens cashed out, the UNI price dropped. However, the price has moved up again as buying pressure for the token increases.
Few days after its launch, the 400 UNI tokens received by the previous users were valued at $3,400. But as at press time, the present UNI market cap is now more than $780 million.
The newly formed token will offer additional incentives, especially to those that provide liquidity on Uniswap. Apart from the provision of liquidity, it will also enable the holders to become part of the governing body of the platform, which is why Yearn Finance founder is registering his interest as a delegate.
Criteria before becoming a delegate
Based on the information available on the blog posted by Uniswap, users can still meet the total number of UNI supplies needed to become one of the delegates by receiving more tokens from others. Once they have a total supply of at least 1% of the 1 billion tokens available, the will be qualified to submit their proposals as a delegate or member of the governing body.
Cronje also revealed that it will be a bad call if the platform immediately starts offering incentives to liquidity pools. According to him, there are other ways to improve the protocol, which includes bringing stablecoins such as sESD and DAI back to their original values.
The interest by Cronje on the Uniswap platform shows the DeFi niche has drawn considerable interest from the industry. The decision has also spurred the market, as the UNI is now doing much better.