Therefore, how to understand UNI?
The intrinsic relationship between token and protocolUniswap's current fees paid are second only to Ethereum and Bitcoin in crypto space, and even surpassed Bitcoin's fees paid previously. As can be seen from the figure below, as of the writing, Uniswap's annualized revenue reaches as high as $325.5 million.Source:tokenterminal
As such, why does the performance of UNI allow the community to feel unsatisfactory?
This is related to the fact that UNI does not directly obtain fees paid by protocols under current circumstances. UNI now only acts as a governance token. All transaction fees generated on Uniswap have not been used to burn UNI or allocate to UNI holders.
The reason why people believe that UNI boasts value is in essence due to Uniswap's leading position in DEX sector. Although UNI is the governance token of the protocol, it has great potentials. Just like ETH holders are optimistic about Ethereum's current leading position in the public chain race. Even if ETH has not yet obtained fees paid by protocols, the Ethereum EIP-1559 for sure will change this situation in the future.
The possibilities of UNI fees paid
The protocol itself is unable to obtain fees paid for the time being, which is the status quo and current dilemma of most crypto projects. But for Uniswap, it isn't caught into such situations. Compared with other tokens, from the perspective of fees paid, UNI is only one step away from the final fee paid. It is not a question of whether there is or not, but a question of whether to give or not.
As a result, it can be found that the current fees are mainly distributed to liquidity providers. At present, liquidity providers not only gain all transaction ...