Revenue Model

Umoja earns an 18% performance fee assessed across all smartcoin holders with a 4% hurdle rate.

Overview

Performance fees are a percentage of the profits that, traditionally, a fund manager charges investors based on the fund's performance. These fees are typically earned only if the fund generates positive returns, aligning the manager’s incentives with the interests of the investors.

Performance Fee Rebates

Smartcoin minters that pay performance fees may earn up to a 50% rebate by:

1. Staking $UMJA to the Governance Pool. Users may earn up to a 20% performance fee rebate (in smartcoins) by staking $UMJA to the Governance Pool. Rebates are redistributed in proportion to the amount of $UMJA staked.

2. (Coming soon). Staking Smartcoins to the Yield Stabilization Fund. Users may earn up to a 30% performance fee rebate (in smartcoins) by staking smartcoins to the Yield Stabilization Fund. Rebates are redistributed in proportion to the amount of smartcoins staked, and only if there are reserve funds left over AFTER the fund has attended to any needs to combat negative yield performance.