Governance Pool

Only protocol participants may govern Umoja. All governors are rewarded for their participation.

The Governance Pool will be introduce in Protocol V1. Governance will be facilitated on Snapshot, and the UIP (Umoja Improvement Proposal) process will be facilitated on the Umoja Discord.

Governance Pool

The Governance Pool in Umoja grants voting power based on the amount and participation level of staked capital, utilizing veUMJA tokens to measure governance influence, akin to Curve Finance and Balancer's vetokenomics model. VeUMJA (vote-escrow UMJA) adopts Curve's veCRV concept, locking 80/20 blends of UMJA/uUSD for up to a year. This vesting strategy, complemented by a Gauge mechanism, is designed to synchronize with token holders' long-term interests by ensuring a fair share of investment returns and UMJA rewards. Specifically, 20% of the protocolโ€™s investment income and an initial 50 million UMJA tokens for rewards are earmarked for the Governance Pool, distributed monthly based on stake proportion.

Locking UMJA/uUSD in an 80/20 mix grants veUMJA tokens, providing governance rights, a share in 20% of the protocolโ€™s investment revenue, and a portion of the 50 million UMJA rewards. Distribution begins with 4 million tokens per month for the first year, then about 1,888,888.89 tokens monthly thereafter. The veUMJA allocation depends on the amount and locking duration of the 80/20 UMJA mix, with the governance influence balanced accordingly.

Key Points:

  • VeUMJA tokens boost liquidity mining and play a crucial role in governance decisions, including DAO changes and gauge management.

  • The Governance Pool introduces fixed staking intervals of 1 to 12 months, penalizing early withdrawals with a 1% fee contributed to the protocolโ€™s treasury.

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