Supply & Demand Dynamics

Token Supply

Umoja has a fixed 1 billion token supply.

Token Utility

Utility	Description	Effect
Governance	One may not govern the Umoja protocol without staking UMJA and uUSD in an 80/20 ratio. In return, they receive an accrued veUMJA to access governance capabilities, as well as UMJA rewards.	Deflation, Participation
Insurance	Stakers are incentivized to stake USD into the Insurance Pool to fortify the protocol against Black Swan events. In return, they are provided with uUSD, which earns them a proportion of protocol revenues, and can further boost their APY by re-staking their uUSD to the Governance Pool.	Deflation, Participation
Discounts	Holding UMJA and/or veUMJA will reduce Synth protocol fees for protocol users. The fee discount is based on the number of UMJA tokens the wallet is holding when executing the hedge. The maximum discount for holding UMJA is 50% for holding 100k UMJA tokens. The maximum discount for holding veUMJA is a 75% discount for holding 20k veUMJA tokens.	Deflation, Participation

Automated Buybacks

In Mainnet V2, Umoja will introduce automated buybacks, in which 50% of the earned protocol fees will be used to buy back UMJA from DEXs deployed on the same network as the protocol (e.g. Uniswap, etc.). Thus, the more usage of the protocol, the more protocol revenue, and the more natural deflation of the protocol's token.