UNI Token: What It Is, How It Works, and Why It Matters in DeFi

When you hear UNI token, the native cryptocurrency of Uniswap, the largest decentralized exchange on Ethereum. Also known as Uniswap token, it’s not just a trading asset—it’s a voting tool, a reward system, and a key piece of the DeFi puzzle. Unlike regular coins, UNI doesn’t just sit in your wallet. It gives holders a say in how Uniswap evolves—like deciding which new tokens get listed, how fees are distributed, or even how much money goes into developer grants.

UNI is deeply tied to Uniswap, a decentralized exchange that lets users trade crypto without intermediaries. It runs on smart contracts, so no company owns it. That’s why UNI matters: it’s one of the first real examples of community-owned finance. People who held ETH or traded on Uniswap early got free UNI in 2020, turning early users into stakeholders. Since then, DeFi, a system of financial apps built on blockchain that cut out banks and brokers has exploded, and UNI remains one of its most visible symbols. You’ll see UNI referenced in guides about liquidity mining, yield farming, and governance votes—all topics covered in the posts below.

But UNI isn’t just about voting. It’s also used to incentivize trading. Liquidity providers earn UNI as rewards, and some protocols lock up UNI to access better rates. The token’s value isn’t just speculation—it’s tied to how much activity Uniswap sees. If more people trade on it, demand for UNI rises. If regulators crack down on DeFi, UNI feels it first. That’s why you’ll find posts here about governance token, a type of crypto that gives holders decision-making power over a protocol, how UNI compares to other tokens like AAVE or COMP, and whether holding it still makes sense in 2025.

The posts below don’t just list prices. They dig into real cases: how UNI was distributed, what happened when the treasury voted on fee switches, why some users sold after the airdrop, and how on-chain data shows whether holders are accumulating or dumping. You’ll find analysis on its role in DeFi ecosystems, how it stacks up against centralized exchange tokens, and what risks come with relying on a token that’s tied to one platform’s success. Whether you’re holding UNI, considering it, or just trying to understand why it keeps showing up in crypto news—this collection gives you the facts, not the fluff.