- UniSwap (UNI) rallies past $5 after launching its new governance token.
- The governance token will reportedly help UNI users contribute to running the protocol.
- While the coin is relatively new, it is allegedly the most widely-distributed coin in DeFi.
UniSwap (UNI) is on an upward trend following the debacle with its forked asset, SushiSwap. The coin developed a bullish momentum that has seen it surge as high as $5.68 at the time of writing. This figure denotes a 121.73% gain over the past 24 hours. According to data from CoinMarketCap, UNI currently sits in the 26th position on CoinMarketCap’s Top-100 list of cryptocurrencies with a market cap of $965,380,960. Over the past 24 hours, the coin has had a trading volume of $3,552,291,965.
This surge emanates from the fact that UniSwap rolled out a governance token to help minimize the pressure from the fallout with SushiSwap. The network will reportedly use the new token to make governance decisions. The token will also grant users the power to contribute to running the protocol. While the coin is still new in the crypto sector, it has become the most widely-distributed token in DeFi.
UniSwap’s benevolence triggered this rally
After UniSwap’s fiasco with SushiSwap, Sam Bankman-Fried, the CEO at Alameda Research, said,
“I think that Uniswap is one of the premier DeFi [decentralized finance] protocols, and its token is as well. It has been the largest decentralized trading venue for a long time.”
While Bankman-Fried’s praise of UniSwap might seem insignificant, it is noteworthy because he is credited with saving SushiSwap, UniSwap’s main competitor.
Soon after Bankman-Fried’s comments on the protocol, UniSwap released its governance token and went ahead to reward its regular users instead of its rich Liquidity Providers (LPs). The regular users included its current customers and past traders. The protocol went as far as awarding anyone that had supplied utility or held its SOCKS token.
This move had renowned crypto experts praise the network for its generosity. For instance, Meltem Demirors, CoinShare’s strategy officer said,
“In a time when people are being greedy and malicious, they did something generous and benevolent, and the fact that it was unexpected was really special.”