Uniswap’s L2 chain Unichain plans to launch new validation network
Unichain, a decentralized finance layer 2 solution developed by Uniswap Labs, is focused on the launch of a new validation network.
As an on-chain decentralization feature, the validation network adds another layer of finality to the network. It also cuts the risks of the network running conflicting blocks as well as contribute to Unichain’s DeFi growth.
The Unichain team announced this on Mar. 7, revealing the plans are part of its roadmap.
Notably, Uniswap ( UNI ) launched Unichain mainnet in February, fulfilling a target set for the first months of 2025.
Ahead of this milestone, the DeFi-focused platform’s developers hinted at plans for further network decentralization. The goal, according to Unichain, was to have a new validation network, dubbed Unichain Validation Network, or UVN, in place.
Anyone can run a node and participate in block verification via UVN.
“Upon its launch, the Unichain Validation Network (UVN) is designed to advance Unichain’s decentralization and enable faster finality. The UVN is composed of a network of full nodes that will monitor and verify blocks the sequencer posts to mainnet,” Unichain Foundation noted in a recent blog post.
To incentivize network participants, Unichain has outlined that 65% of its network revenue will go to validators and stalkers.
Unichain says a test version of UVN is scheduled for the testnet environment in the coming months. Once it goes live on mainnet, it will open up 65% of net revenue for distribution to validators and stalkers. Until then, Unichain Foundation will deploy the generated chain revenue to ecosystem growth efforts via its Unichain Growth Reserve.
Other than fast block times aided by the decentralized node operator platform under UVN, Unichain will also feature rollups and become part of Optimism’s Superchain post mainnet.
The development will see Uniswap Labs become an OP Stack core contributor, as well as a result in the Optimism Collective receiving a share of the Unichain gross net revenue.
Minting a token refers to the process of creating new tokens on a blockchain.
Minting a token refers to the process of creating new tokens on a blockchain. It is a fundamental mechanism in tokenomics, used for various purposes such as cryptocurrencies, NFTs, and utility tokens. Here’s a comprehensive analysis of minting a token:
1. Understanding Token Minting
Definition:
Minting a token means generating new tokens and registering them on a blockchain. It involves defining the token’s attributes, supply mechanisms, and distribution models.
Key Aspects of Minting:
Blockchain Choice: Ethereum (ERC-20, ERC-721, ERC-1155), Binance Smart Chain (BEP-20, BEP-721), Solana (SPL), Polygon, etc.
Token Standards: Defines the token's functionality (e.g., fungible vs. non-fungible).
Smart Contracts: Enforces rules for minting, burning, and transferring tokens.
Supply Mechanism: Fixed, dynamic, inflationary, or deflationary.
2. Minting Process
Define the Token Standard (e.g., ERC-20 for fungible, ERC-721 for NFTs).
Develop a Smart Contract using Solidity (Ethereum), Rust (Solana), or another language.
Deploy the Contract on a blockchain network.
Execute Minting Function to generate tokens.
Token Distribution to wallets, exchanges, or platforms.
Example Solidity Code for Minting an ERC-20 Token:
pragma solidity ^0.8.0; import "@openzeppelin/contracts/token/ERC20/ERC20.sol"; contract MyToken is ERC20 { constructor() ERC20("MyToken", "MTK") { _mint(msg.sender, 1000000 * 10 ** decimals()); } }
3. Tokenomics Considerations
Supply & Inflation
Fixed Supply: A set number of tokens (e.g., Bitcoin’s 21M).
Mintable Supply: New tokens can be minted over time (e.g., Dogecoin).
Burn Mechanism: Tokens can be destroyed to control inflation.
Utility & Use Cases
Governance: Token holders vote on decisions (e.g., DAO tokens).
Staking & Rewards: Tokens earn passive income (e.g., staking Ethereum).
Access & Payments: Used within dApps (e.g., Uniswap’s UNI token).
Distribution Model
Airdrops: Free tokens for marketing.
IDO/ICO/IEO: Fundraising methods.
Mining & Staking Rewards: Incentivizing network security.
4. Security & Compliance
Common Security Risks
Reentrancy Attacks (e.g., The DAO hack).
Integer Overflow/Underflow (Use SafeMath libraries).
Unauthorized Minting (Restrict minting permissions).
Regulatory Compliance
KYC/AML Requirements: For security token offerings.
Tax Implications: Vary by jurisdiction.
SEC Regulations: Some tokens may be considered securities.
5. Popular Platforms & Tools for Minting
Ethereum: Most popular for smart contracts (ERC-20, ERC-721).
Binance Smart Chain: Lower fees, fast transactions (BEP-20, BEP-721).
Solana: High-speed, low-cost minting (SPL tokens).
Polygon: Layer-2 scaling solution for Ethereum.
OpenZeppelin: Secure smart contract templates.
6. Costs & Gas Fees
Minting costs depend on blockchain congestion.
Ethereum gas fees fluctuate (can be high during peak usage).
Layer-2 solutions (Polygon, Arbitrum) offer cheaper alternatives.
7. Future Trends in Token Minting
AI-Generated Smart Contracts for automated minting.
NFT Evolution: Dynamic & fractionalized NFTs.
Cross-Chain Minting: Multi-chain token interoperability.
Regulatory Developments: Stricter guidelines for security tokens.
Conclusion
Minting a token involves choosing the right blockchain, designing tokenomics, securing smart contracts, and ensuring compliance. With growing innovation, new mechanisms like cross-chain minting and AI automation are reshaping token creation.
$MINT
Uniswap Faces Governance Crisis Over Unichain L2 Launch
Uniswap Labs is facing fierce criticism after deciding to launch Unichain, a new Layer-2 (L2) network, without much consultation with the Uniswap DAO. The action has raised eyebrows among members of the community, who claim it demonstrates a lack of transparency and calls into question governance within the system.
The introduction of Unichain has fueled anger among UNI token holders and Uniswap governance participants. They feel left out of the decision-making process and believe that Uniswap Labs and the Uniswap Foundation have acted unilaterally to satisfy their own interests.
A chief area of debate is the $165.5 million in capital sanctioned by the Uniswap Foundation to be used for funding Unichain’s development and liquidity migration. Critics point out that as long as Uniswap Labs is still raking in significant revenues, UNI holders reap nothing.
DeFi analyst Ignas highlighted this issue, saying that Uniswap has collected some $171 million in front-end fees over the last two years, but token holders do not get any part of the revenue. In contrast to protocols like Aave, which has a fee-sharing mechanism in place to reward its users, Uniswap has chosen to centralize revenue. “In a shifting era where Aave proposes buying back $1M of AAVE per week and Maker $30M/month buy-backs, UNI holders are a milking cow with no value accrual to the token,” Ignas said.
Crypto commentator Duo Nine also denounced Uniswap’s investment strategy, saying that the money could be spent on buybacks rather than on acquiring Unichain. “They are better off buying UNI with that cash. Their flywheel won’t work if they don’t reward token holders,” he explained.
A further urgent issue linked to the Unichain launch is the potential disruption to the distribution of liquidity throughout the DeFi ecosystem, as mentioned in our previous article. The Uniswap DAO has set aside $21 million in order to drive Unichain’s total value locked (TVL) upwards from $8.2 million to $750 million. Fears have, however, been expressed that far from introducing new capital, such incentives could serve to redirect liquidity away from Ethereum and current L2 solutions.
Ignas warned against that approach, arguing that redirecting liquidity to Unichain might undermine Uniswap’s grip on Ethereum and open up space for rivals. “Incentivizing TVL on Unichain leads to LPs migrating from Ethereum and L2s, decreasing market share on ETH/L2s, and enabling competitors to emerge,” he said. That reallocation of liquidity might leave traders facing unhelpful trading conditions, including higher slippage and diminished efficiency throughout the wider DeFi ecosystem.
In spite of the scandal, the Uniswap Foundation reaffirmed its intent to build out Unichain and promote Uniswap v4. Yet, doubt remains as to whether these plans will improve the protocol’s long-term future.
Since the release of Unichain on February 11, sentiment around UNI has been nothing but diverse. The token has recorded ups and downs, with its price currently at $7.52 during the most recent session, trading up a humble 2% from the previous day’s trade.
US GOVERNMENT PORTFOLIO:
$17.64B in $BTC,
$122.2M in $ETH,
$66.6M in $WBTC,
$24.1M in $BNB,
$13.3M in $WBNB,
$11.3M in $WETH,
$3.71M in $TRX,
$2.16M in $UNI,
$1.69M in $LINK,
$1.04M in $SAND.