The UNI token is the governance token of the Uniswap protocol, launched in September 2020. Its primary functions include:

• Voting on protocol changes and upgrades
• Delegating voting power to representatives
• Potentially receiving a share of protocol fees if the fee switch is activated
• Participating in liquidity mining programs
• Representing ownership stake in the Uniswap ecosystem

Token holders can vote on treasury allocations, technical parameters, strategic partnerships, and other important decisions affecting the protocol's future.

To participate in Uniswap governance with UNI tokens:

• Hold UNI tokens in a compatible wallet (Metamask, WalletConnect, etc.)
• Visit the Governance section of the Uniswap app
• Either vote directly on active proposals or delegate your voting power

To delegate, select a delegate and confirm the transaction.

To vote directly, review active proposals, select your position, and confirm.

Participate in forum discussions to shape future proposals. Monitor governance results and implementation. Active participation may require following the Uniswap governance forum and Discord for proposal discussions.

The initial UNI distribution was structured as follows:

• 60% to the Uniswap community (including 15% immediate airdrop and 45% for future distribution)
• 21.51% to team members with 4-year vesting
• 17.80% to investors with 4-year vesting
• 0.69% to advisors with 4-year vesting

The distribution has evolved through:

• Community treasury allocations for grants and incentives
• Liquidity mining programs distributing tokens to liquidity providers
• Vesting schedule progression for team and investor allocations
• Governance-approved special allocations for strategic initiatives

Uniswap governance distinguishes itself through:

• Large and diverse token holder base from the generous initial airdrop
• Substantial treasury resources under governance control
• High technical quality of governance proposals
• Strong delegate ecosystem with recognized experts
• Significant influence over the broader DeFi ecosystem
• Multiple implementation teams working on governance-approved roadmaps
• Balance between innovation and stability in governance decisions
• Historical significance as one of the first major governance tokens

The fee switch represents a significant potential value driver for UNI:

• If activated, it would direct 0.05% of all trading volume to the protocol
• With billions in daily trading volume, this could generate substantial revenue
• Governance decides if and when to activate this feature
• Fee revenue could be directed to token holders, treasury, or buybacks
• The market prices this optionality into the token's current value

Activation considerations include LP incentives, competitive positioning, and regulatory implications. The switch remains inactive as of now, pending governance decision.