Overview
Last updated
Last updated
The following details the tokenomics of the Umoja protocol. Some tokenomic features are implemented in Mainnet V1, whereas others are planned to be implemented in later versions.
The following provides an overview of Umoja's tokenomics:
Token Name
Umoja (UMJA)
Contract addresses
Arbitrum: 0x16A500Aec6c37F84447ef04E66c57cfC6254cF92
Market
DeFi, Asset Creation
Summary
Umoja is DeFi's structured product and trade execution layer.
Problem
Investors lack accessible, low-risk, high-yield, and liquid digital asset investment opportunities due to the complexity of managing crypto-native yield strategies and the absence of structured products that limit risk, achieve yield targets, and ensure security and compliance, creating a significant market gap in a rapidly growing digital asset sector optimally forecasted to reach .
Max Token Supply
3,000,000,000
Monetary Policy
Fixed Supply, Deflationary w/ Increase in Protocol AUM
Initially Supported Networks
Ethereum, Arbitrum
Inflation Schedule
You find the , which is updated regularly. Core team member and investor vesting & unlock terms are as follows:
Token Utility
Governance. By staking the $UMJA token, one may accrue $UMO tokens, which are non-transferable governance rights that can be used on snapshot to vote on protocol proposals and polls. All governors are automatically eligible to participate in the protocol’s Working Lottery as well.
Performance Fee Rebates. Users who stake $UMJA to the Governance Pool and smartcoins to the Yield Stabilization Fund, respectfully, may receive up to a 50% performance fee rebate. Rebates are distributed in smartcoins.
Growth Incentive. Users who mint smartcoins by depositing collateral are rewarded with $UMJA token rewards, similar to how Bitcoin miners are rewarded with BTC.
Burning Fee. Smartcoin minters who wish to redeem their underlying collateral by burning their smartcoins must also burn $UMJA tokens to do so. Doing so makes the $UMJA token deflationary, as the burn fee rate is greater than the mint rewards rate.
Token Mechanics
Governance Pool (GP). In order to govern the protocol, users must stake $UMJA to the GP and accrue $UMO tokens, a non-transferable unit of voter influence that can be used on Snapshot to vote on protocol polls/proposals. Additionally, GP stakers receive 20% of the protocol's management fees in smartcoins.
Yield Stabilization Fund (YSF). 30% of the protocol's management fees are distributed to the YSF to protect smartcoin holder principal from potential negative yield performance. Users may stake their smartcoins to the YSF in exchange for conditional smartcoin rewards whenever the fund's capital isn't used to stabilize yields.
Smartcoin Mint Rewards & Burning Fees. Users who mint smartcoins are rewarded with $UMJA tokens based on the $UMJA emissions schedule & volume of smartcoins minted. Users who burn smartcoins to redeem their underlying collateral must burn $UMJA tokens as a fee to do so. Only smartcoin minters may burn smartcoins. The burn fee is marginally more than the mint reward amount to provide arbitrageurs opportunities to earn profits using the protocol.
Airdrop Redemption & Vesting. Users who earn protocol points become airdrop eligible and can exercise their airdrop eligibility by either (1) instantly redeeming a small amount of tokens, or (2) staking those tokens into the Airdrop Vesting Bonus Pool and earning more tokens linearly.
Working Lottery (WL). All holders of $UMO tokens are automatically eligible for lottery rewards, which are distributed randomly but weighted according to the size of their holdings. To unlock these rewards, recipients must verify their engagement with the protocol through on-chain attestations, such as staking, swapping, or learning activities.
Governance
Only protocol participants can govern via getokenomics.
Compliance
You may find the $UMJA token .