The market analysis firm, Glassnode, on September 24, while criticizing Uniswap, published a report claiming that the decentralized protocol is not much transparent regarding some elements of its token.
Glassnode further stated that earlier, the Uniswap promised to settle the tokens which it has issued to the team and investors. But now it appears that the decentralized protocol is being deviated from that promise.
UNI Settled In Standard Ethereum Addresses
On September 16, while launching its governance token UNI in the market, Uniswap stated that in the coming four years, the decentralized exchange would vest tokens issued to its team and investors.
However, it appears that, presently, the issued tokens are settled in the standard Ethereum addresses.
It is to be noted that any individual having manages the key of those Ethereum addresses, can use the tokens settled there.
Glassnode, in its report, has stated, “This method of storing the tokens gives the Uniswap team and investors what essentially amounts to admin rights over the protocol.”
Although the decentralized exchange has been doing things in good faith, it should still explain why the issued tokens have not been locked in the smart contract.
Uniswap Mint One Billion Tokens
When UNI was introduced in the market, Uniswap announced that in these four years, a total of 1 billion minted UNI would be accessible.
The decentralized exchange kept aside 600 million UNIs for its community members. Out of those 600 million, it reserved 215 million UNIs for its current and future employees and 178 million for its investors.
Uniswap also decided to offer 6.9 million tokens to its advisors.
Glassnode has mentioned in the coming four years, Uniswap was supposed to vest its UNI tokens, which means, till that time, neither the investors nor the employees were allowed to have access to those tokens.
However, Glassnode is still not satisfied with Uniswap, the market analysis firm believes that the details provided by the decentralized exchange are a bit confusing.