31 Jul 2023
Why we decided to exclude the UNI token from the KVQ Index
The Uniswap protocol generates significant trading fees, but will the UNI token ever capture its (fair) share? We believe not.
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UNI, the Uniswap DEX protocol token, is mainly a governance token. The current business model of Uniswap is a 0.3% fee on trades, where all fees currently go to liquidity providers. Both these parameters can be changed by governance votes to pay dividends to UNI holders. The supply is also fixed, and a majority vote would be needed to issue more UNI, much like shareholder voting in a company.
Key statistics for the Uniswap protocol. July 31, 2023. Source: K33 ResearchIn a slow DeFi market, the fully diluted value of the UNI token is 15 times the annualized
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