Policy Framework
The following provides a high level overview of Umoja's policy framework:
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 USD $250 trillion by 2028.
Even worse, the entire digital asset market lacks the uniform DeFi trade execution layer necessary for such a massive market opportunity to be fully realized.
Market
The global structured finance market was valued at approximately USD 1.72 trillion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 12.47%, reaching around USD $3.49 trillion by 2028. This impressive growth is driven by the increasing demand for diversified investment options, such as digital assets. Despite this, there are no mainstream, crypto-native structured products available, even though BTC and ETH ETFs saw multi-billion dollar net inflows within months of their launch.
A global structured digital asset market cannot thrive without the necessary CEX and DeFi trade execution engines, which are currently absent. Traditional financial execution layers support an average daily volume (ADV) of $1.94 trillion, with a remarkable 69.1% year-over-year increase.
We know global financial markets are inevitably moving towards digitization. Structured digital assets, enabled by robust CEX and DeFi trade execution engines, are the future, mirroring the essential foundations of today's traditional financial markets but with far greater efficiency.
Governance
Umoja believes in an ethos of progressive governance. In Web3, the term "progressive governance" refers to a governance model that evolves and adapts over time, allowing a decentralized organization or protocol to improve decision-making processes and incorporate more community participation as it matures. Key aspects include:
Decentralization over time: Early governance may start with a core team or a small group, but as the project grows, more control is gradually given to the community through decentralized mechanisms like token-based voting.
Inclusive decision-making: Progressive governance aims to involve a broader set of stakeholders, encouraging diverse participation and ensuring that decisions reflect the interests of a wide range of users, rather than just early adopters or founders.
Governance by iteration: Protocols or DAOs (decentralized autonomous organizations) using this ethos continuously refine their governance structures. They experiment with new mechanisms (e.g., quadratic voting, liquid democracy) and improve them based on feedback and outcomes.
Transparency and accountability: Progressive governance emphasizes open communication, ensuring all participants understand how decisions are made and can hold governing bodies accountable.
Evolution with technology and community needs: Governance systems are designed to adapt to technological advancements and the changing needs of the protocol or its community.
This approach contrasts with static governance models by embracing change and scalability, focusing on long-term decentralization and inclusivity.
Compliance Policy
The Umoja ecosystem is supported by the Umoja Foundation (Cayman Islands), Amani Foundation (BVI), and Umoja Labs Corp. (Delaware). The Umoja and Amani Foundations have no U.S. ties, and Umoja Labs Corp., the protocol's core developer, is a third-party contractor for the Umoja Foundation.
The Umoja and Amani Foundations provide the protocol's Terms of Use and Disclosures, with all token activities authorized by Amani Foundation. These documents are publicly available and updated with changes to the protocol's tokenomics and technology.
Umoja Labs Corp. holds $2M in general liability insurance (CONTINENTAL CAS CO) and $2M in tech/cyber insurance (LLOYDS LONDON), with coverage set to increase as the protocol's AUM grows, ensuring the safety of users and their collateral.
The protocol's compliance policy will continue to evolve in parallel to that of the jurisdictions in which its end-users operate to ensure transparency, consumer safety, and regulatory due diligence.
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