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:

Token Emission Growth < Token Demand Growth

$UMJA is deflationary long-term, with demand driven by smartcoin rewards earned through staking in the Governance Pool, which helps offset token emissions along with token burning for smartcoin collateral redemption. This results in lower token emission growth compared to potential demand growth.

You may find Umoja’s inflation (token emissions) schedule below:

UMJA Circulating Supply Over Time

UMJA Inflation Rate Over Time

UMJA's annual inflation rate over the next 5 years, assuming $10M USD of smartcoins are minted per month and 20% of smartcoin supply is burned per month, is the following:

Inflation Rate Year	Annualized Inflation Rate
Yr. 1	28.81%
Yr. 2	9.29%
Yr. 3	2.99%
Yr. 4	0.07%
Yr. 5	-4.31%