How does UNI tokenomics affect supply and potential price action?

[kevin1]

UNI has a total supply cap of 1 billion tokens, with a vesting schedule that extends to team members, investors, and advisors. Key points for advanced users:

60% of tokens are reserved for community governance initiatives.

21.51% allocated to team and advisors, subject to multi-year vesting.

Distribution of remaining tokens occurs through liquidity mining and ecosystem grants.

From a trading perspective:

Unlock events from team or investor allocations can temporarily increase circulating supply, influencing short-term price dynamics.

UNI’s role as a governance token makes it sensitive to protocol announcements, such as fee changes or treasury fund utilization.

Advanced traders often monitor proposal timelines, treasury allocations, and vesting unlocks to anticipate price movements or shifts in governance influence.