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Proposal approved! Uniswap to sell 10 million UNI tokens to sustain foundation operations for two years

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Proposal approved! Uniswap to sell 10 million UNI tokens to sustain foundation operations for two years

Uniswap recently passed a governance proposal to allocate approximately $46.2 million to sustain the operations of the Uniswap Foundation for two years, requiring the sale of 10.68 million UNI tokens.

The previously activated 0.15% frontend interface fee will be used to fund the daily operations of Uniswap Lab:

Uniswap to Start Charging "Interface Fee" Tomorrow! Specific token trades will incur a 0.15% fee, applicable only to frontend users

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Selling UNI to Maintain Uniswap Foundation's Two-Year Operations with $40 Million

According to the announcement from the Uniswap Foundation, the governance proposal for Uniswap Foundation to apply for approximately $46.2 million for two years of operational funding has been approved.

The funds will be used for long-term development, operation, and improvement of the Uniswap protocol.

The funds will come from the sale of governance token UNI, which means approximately 10.68 million UNI tokens need to be sold.

Uniswap first proposed the idea of forming a foundation in August 2022:

Uniswap Proposes to Establish a Physical Foundation with a Three-Year Budget of $70 Million, Community Opinions are Divided

Three Million UNI Tokens Transferred to Exchanges

Blockchain analyst Yu Jin tracked the token transfer process of Uniswap:

  • 10/21: Foundation custody address unlocks 10.68 million UNI tokens

  • 10/24: Custody address transfers 3 million UNI tokens in batches to a new address

  • 10/25: 3 million UNI tokens have been transferred to market maker Wintermute's deposit address on Kraken

Two-Year Operational Funding Accounts for 1% of UNI's Initial Supply

The total supply of Uniswap's governance token UNI is 1 billion tokens, with the initial distribution over 4 years as follows:

  • 60% to Uniswap community members

  • 21.51% to team members

  • 17.80% to investors

  • 0.69% to advisors

This means that the foundation's two-year operational funding of 10 million UNI tokens approximately accounts for 1% of UNI's initial supply.

Additionally, UNI will have an issuance schedule with approximately 2% perpetual inflation starting around 2024.

UNI Initial Supply