UNI is an ERC-20 token on the Ethereum blockchain that has control over the management of the Uniswap protocol, the treasury of the UNI token community and the change in protocol fee (the 0.05% commission that is charged ) offers. n the holders of the UNI token when activated).
The main function of the UNI token is to control the Uniswap protocol and the funds in the governance treasury.
The Uniswap protocol is a series of smart contracts with token pairs. With these smart contracts, users can exchange any ERC-20 token with one another.
In Uniswap, users can exchange tokens and add tokens to a pool to earn a commission. Or list a token without the intervention of a trusted third party. Since all interactions take place directly in the blockchain, there are implicit costs in GAS. Uniswap has become the most important gas supplier in the Ethereum public network and the most widespread decentralized application in the ecosystem.
Another aspect of the benefits of UNI is a possible revenue sharing. The governance agreement includes a tariff change that allows UNI owners to earn a portion of the protocol fees. This change is subject to a term of 180 days, which allows investors and liquidity providers (LPs) six months to prepare for the transition to this new revenue sharing model.