Airdrop Vesting Pool
Airdrop recipients are early protocol adopters who have either staked, opened a synth position, or minted yBTC. To reward adopting the protocol early, there are 10M UMJA tokens allocated to the airdrop community on TGE. There may be additional airdrops facilitated beyond TGE.
Overview
The $UMJA token airdrop redemption smart contract will facilitate the distribution of $UMJA rewards to participants who have accumulated points for participation in various tasks over the course of numerous engagement campaigns.
The airdrop process will provide users with a choice:
An immediate disbursal of tokens, albeit at the lowest quantity possible, or;
The ability to select a time-locked vesting period and increase their final disbursement of tokens.
Users who fail to select either option within the claim period (31 days) will forfeit their airdrop altogether.
General Logic Structure
The airdrop redemption smart contract will be a dual-phased system. Upon activation of the airdrop system, admin will deposit the total amount of airdrop allocation (10,000,000 $UMJA) into the smart contract. Of this allocation, 2,000,000 $UMJA (20% of total) will be available for immediate claim. The remainder of tokens (8,000,000) is reserved for disbursal to users who choose to vest.
User addresses able to claim or vest will be verified using a merkle tree system. The first phase will last 31 days and users will need to choose if they take the immediate claim (a portion of 2M $UMJA) or choose to vest for 30, 90, or 180 days. Any users who do not make a decision within this period are deemed forfeit and their tokens contribute to the final sum awarded to stakers.
The merkle tree system will include the user’s address along with the quantity of tokens they would receive if they make an immediate claim. This means that the total amount of tokens assigned via merkle tree will equal 2M $UMJA (points will be converted to $UMJA allocation based on various factors off-chain). For users who choose the vesting option, this value will be used to determine that users “shares” of the vesting pool instead. The length of lockup selected will also determine the multiplier on their “shares”. As users join the lockup option, the contract will update ‘totalShares’ which will be used to calculate user allocations post-lockup.
Shares/Asset System Explained
In order to distribute the vested tokens, we will use a mechanism similar to ERC4626 Vaults. The vault system relies on two baskets of values, known as “shares” and “asset”. The “asset” in this case will be $UMJA tokens in the contract available for distribution. The “shares” are a tracking value that determines the % ownership a user has over the asset. In the case of this airdrop system, we will use the original airdrop quantity (confirmed via merkle tree) as the “shares” for the users who choose to lock. The relationship between shares and assets is as follows:
In this equation, totalUMJA will be the final quantity of $UMJA remaining in the contract after the initial claim period (8M + leftover from 2M). userShares will be based off the original airdrop claim allocation (from merkle tree) multiplied by the weight of their lockup period. As users choose to lockup their airdrop, the contract will add to totalShares which will be final once the claim period ends. This equation can then be rearranged to calculate usersUMJAAmt:
Therefore, the smart contract will know in advance (from the moment the claim/vesting-entry window closes) how much total $UMJA each vesting participant will receive once the vesting period ends. This $UMJA will unlock on a linear basis and be claimable by users daily, up until the end of their lockup period.
Partial Daily Withdrawals
Throughout the vesting period, users will be able to make partial withdrawals of their vested tokens on a linear release schedule. They can make the claim once a day. Since the final reward amount can be calculated in advance, the partial claim amount will be calculated from the percentage of time elapsed in the vesting period. If previous partial claims have been already made in the past, those claims will be deducted from the most recent percent calculation of current claim amounts.
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