Unichain, Uniswap’s Decentralized Finance (DeFi) Layer-2 solution, has announced the upcoming launch of a new validation network.
The team behind L2 confirmed that this solution is part of its roadmap. They noted that it would facilitate the chain’s decentralization by allowing anyone to run a node to verify blocks.
Unichain Unveils Roadmap With Validation Network
The incoming validation network will add a layer of finality to the Uniswap network.
This will reduce the risk of conflicting blocks and contribute to the overall growth of Unichain’s DeFi ecosystem.
Notably, Uniswap’s Unichain went live on the mainnet a few weeks ago. It offered an avenue for users to bridge, swap, and supply liquidity through the Uniswap wallet and web application.
Essentially, the developer team behind Unichain has been pursuing further decentralization for Uniswap.
As part of this vision, they planned to launch a new validation network, Unichain Validation Network (UVN).
An exciting feature of UVN is that anyone can run a node and participate in block verification through the network.
According to a recent update from the Unichain Foundation,
“…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.”
Essential Benefits of This L2 Innovation
The decentralized node operator platform under UVN will encourage fast block times amid the presence of rollups.
Ultimately, these features could push Unichain towards joining Optimism’s Superchain post mainnet.
Additionally, Uniswap Labs said it could become an OP Stack core contributor.
This move may also result in the Optimism Collective receiving a share of the Unichain gross net revenue.
Initially, Unichain designated 65% of its network revenue as an incentive for its participants.
This portion will go to validators and stakers. Having UVN on the mainnet will distribute these funds to the eligible entities.
In a few months, the test version of the solution is scheduled to go into the testnet environment and head to the mainnet.
While the ecosystem waits for this rollout, the Unichain Foundation is preparing to deploy the generated chain revenue.
This will go a long way toward encouraging the ecosystem’s growth efforts via its Unichain Growth Reserve.
UNI Price Advantage, $15 in Play?
The news of the validation network triggered a positive momentum within the Uniswap ecosystem.
At the time of this writing, UNI’s price was $7.26, down from its $13.69 high in January. The current price corresponds to a 1.4% increase within 24 hours.
Meanwhile, the slight gain is insufficient to cover the losses it incurred in the past 30 days, resulting in a 21.5% drawdown.
Should the coin sustain its price recovery, UNI may soar to $15 and set a new Year-to-Date (YTD) high.
Analysts identified a cup-and-handle pattern on the Uniswap weekly chart at the beginning of the year.
At the time, this suggests a potential bullish breakout. For the mid-term, market observers predicted a high price range of $28 to $32 for UNI in the long term.
A few catalysts, including the massive changes coming to Unichain, could help achieve these price levels.
