The UNI token is the governance token of the Uniswap protocol. Holding UNI allows you to vote on proposals that dictate the future of the platform, including fee changes and treasury management. While providing liquidity doesn’t directly earn you UNI (unless in specific incentive programs), understanding governance is key. Major decisions can affect all liquidity providers, influencing fee structures and potential earnings. The decentralized community governing Uniswap ensures the protocol evolves in a way that benefits its users.
