As Uniswap’s cash mining rewards programme will end within a week, the project has called a community meeting to discuss how to move forward.
The large decentralised Uniswap exchange has announced an „unofficial community call“ set for November 12 at 5:00 pm UTC. The call is scheduled to discuss several central Uniswap governance issues, including the future of its liquidity mining programme.
After a series of rival DEX clones attempted to divert Uniswap users by exorbitant native token rewards to liquidity providers during the DeFi boom, Uniswap retroactively launched its native UNI token to users and launched its own liquidity mining program Ethereum Code scam in mid-September.
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Uniswap’s current liquidity mining programme is scheduled to end on 17 November, and a date has been set to discuss whether to extend the existing programme or revise the plan. The initial programme allocated UNI 5 million for the air launch to liquidity providers in total, equivalent to 83,333 tokens per day.
Many believe that the UNI air launch and liquidity rewards programme helped the exchange secure its position as a leading DEX in the face of numerous „vampire attacks“. However, the program may now have a negative impact on the price performance of Uniswap’s government tokens; the reward program airdrops over $260,000 in tokens daily at the current price of $3.13 each.
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UNI began trading for approximately $3, and news of the liquidity mining programme helped drive a rally to a peak of nearly $8 within three days of the token’s launch. However, UNI fell steadily from September 19 to early November to reach a record low of $1.80 on November 5.
Some traders believe that the best thing for the Uniswap token would be to stop the liquidity mining program, and Twitter user „Tetranode“ is telling his 5000 followers that ending liquidity rewards and associated selling pressure would lead to a new phase of price discovery for UNI:
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The community meeting is also scheduled to discuss Uniswap’s first two failed governance proposals, project governance processes and integrations with fellow heavyweights DeFi, Compound and MakerDAO.
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