Overview

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.

Token Overview

The following provides an overview of Umoja's tokenomics:

Detail	Description
Token Name	Umoja (UMJA)
Market	DeFi, Composable Asset Management
Summary	Umoja is an asset management protocol that converts altcoins into ‘smartcoins’ that limit risk & optimize yield.
Problem	Retail investors control 52% of global AUM, yet make an ROI 4x less than their institutional counterparts in an asset management market set to scale to $5.4T by 2030. Financial literacy delimits retail investor returns, and is impossible to globally scale. While scaling financial literacy is impossible, automating money to work for investors is not.
Max Token Supply	1,000,000,000
Monetary Policy	Fixed Supply
Initially Supported Networks	Arbitrum & Merlin Chain
Inflation Schedule	You find the inflation schedule here, which is updated regularly. Core team member and investor vesting & unlock terms are as follows: Platform: Unvest will be used to manage token vesting for core team members, investors, and advisors. Core Team Members. 12-month vesting period with a 36 month linear unlock. Investors and Advisors. Investor unlock period of 12 months with linear vesting starting at the token generation event (TGE). Investors may stake 20% of their tokens as they are unlocking capital.
Token Utility	Governance. Vetokenomics by staking UMJA w/ either uUSD (Staked USDC in Insurance Pool) in an 80/20 ratio Insurance. Staking USDC to the Insurance Pool defend protocol from Black Swan and smart contract exploit events. Protocol Fee Discounts. Protocol fees are reduced for those that hold UMJA.
Governance	Only protocol participants can govern via vetokenomics.

Token Value Accrual

The UMJA token accrues value via the following, built in tokenomic models:

• Governance Pool Staking (V2). UMJA is staked into the Governance Pool to earn additional yield rewards and access governance capabilities.

• Insurance Pool Staking (V2). UMJA is staked into the Insurance Pool to earn yield rewards and protect the protocol from a shortfall of capital that could gravely affect end-users (i.e. Black Swan Events & Smart Contract Exploits).

• Protocol Fee Discounts (V1). Holding UMJA tokens in their wallets incentivizes users by offering them discounts on the protocol’s services, thereby reducing their overall costs.

• Protocol-Enabled Buybacks (V2). Half of all fees collected from the use of Synths and asset minting will be allocated to buy back UMJA tokens on decentralized exchanges (DEXs) operating on the same networks as Umoja.