[Discussion] Uniswap Liquidity Incentive Plan

Many people who have received UNI via airdrop or by buying become concerned with its price movements. They, as holders of the asset, feel dissatisfied when UNI price goes down. There is one thing to consider, though:

When UNI price gets lower due to ongoing process of distribution, it is a healthy process that is beneficial for Uniswap governance.

When LPs receive UNI rewards by providing value to the network, they can keep or sell them.

Distributing UNI rewards to LPs who keep them and become part of the governance process is a positive result.

LPs who sell the tokens self-retire themselves from Uniswap governance.

By doing so, they also bring the price down. When the price is lower, it creates a better buying opportunity for people who believe in Uniswap’s future. So present and future investors in the protocol benefit.

The same logic applies to past users who received the airdrop.

The power in the network gets decentralized and distributed towards good actors.

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