Inflation Schedule
It is crucial to maintain a balanced inflation schedule for Umoja (inflation, in this case, is the number of tokens entering the circulating supply from a fixed, total supply), particularly in light of the planned unlock schedule for the core team and investors, coupled with the substantial liquidity influx expected from the airdrop. Experience has shown that when airdrops are employed, the price of the token typically experiences a significant drop post-airdrop. This trend is largely attributed to the behavior of most airdrop recipients, who tend to quickly sell off their tokens in the secondary market. Therefore, careful planning and strategic measures are essential to mitigate such market impacts and sustain the token's value. Most importantly, we must ensure the following:
If Token Emission Growth < Token Demand Growth, then Token Price Increases
You may find Umoja’s inflation (token emissions) schedule below:
To minimize token price impact from the airdrop and initialization of investor/team linear vesting at Umoja’s TGE in late Q2 2024, we (1) enforce eligibility vesting, and (2) we limit token redemption to a 60 day period. Additionally, to minimize mass-sell off during the coming days of the airdrop for those that do redeem the token, we will announce a Boosted Staking Program the day of the airdrop that will favor those that lock up their UMJA tokens for 3+ months, further distributing initial sell-offs over the following quarter (in our emissions schedule, we assume 10% of airdrop participants stake their tokens).
Overall, here’s the TLDR on Umoja’s Inflation Schedule:
veUMJA Staking Rewards are 4M/Mo first 12 Months and then 1,888,888.89/Mo post-12 Months until staking rewards need to be replenished after 5 years.
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