Unibot, a trading application, has recently announced its decision to issue a native token within the Solana ecosystem. This new token, known as UNISOL, is designed to accrue value back to the holders of the original Ethereum-based UNIBOT tokens. This move was initially met with criticism and caused a volatile reaction in the market last week.
The decision to expand into the Solana ecosystem was made by Unibot in late December. However, the announcement of the introduction of the UNISOL token, which would accrue revenue in the form of Solana’s SOL tokens, was made only last week. This decision sparked concerns among long-time UNIBOT holders. They feared dilution as traders would be inclined to choose the newer token in favor of the older one, leading to a sell-off.
UNISOL’s Potential Impact on UNIBOT’s Value
Despite the initial backlash, developers stated early Monday that the introduction of UNISOL could ultimately boost UNIBOT’s value accrual. This statement helped to ease some of the losses from the past few days as traders began to price in this new information. The Unibot platform, which connects user wallets to the decentralized exchange Uniswap, allows users to trade tokens as easily as they would send messages to each other on popular messaging applications like Telegram or a terminal.
The developers further explained the revenue sharing model for protocol revenue generated by Unibot on Solana. The revenue is split 50/50 between two pools. Pool #1 consists of holders of UNIBOT on Ethereum, with no strings attached. These holders will link their Ethereum address, which holds UNIBOT, to a Solana address that receives revenue in the form of SOL. Pool #2 consists of holders of UNISOL on Solana.
UNIBOT holders are set to receive approximately 80% of the supply of UNISOL through a snapshot and claim mechanism. Since its launch in early January, over 20,000 users have generated more than $130 million in total volume, according to claims made by the developers on Monday.
On-chain data shows that Unibot has garnered 11,700 ether (ETHUSD) in fees since the platform went live in May, paying out a portion of this straight to token holders. The number of users has also steadily increased, reaching 41,000 on Monday compared to just over 2,000 at the end of last June.
On Sunday alone, the platform generated $74,000 in fees across Solana and Ethereum on $7.5 million in combined volumes. According to Dune Analytics, Unibot’s average daily volumes are just above $5.5 million, a significant increase from the $900 million daily on the market-leading DEX Uniswap.
