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UMA Announces Initial Uniswap Listing

UMA Announces Initial Uniswap Listing

UMA – a protocol for permissionless derivatives – is asserting an Initial Uniswap Listing (IUL) for the protocol’s native token, $UMA.

UMA’s native token will primarily be used for 2 core functions: (1) as a governance token for the protocol and (2) to satisfy worth requests. Governance actions could embrace figuring out what varieties of contracts can entry the system, which property are supported, in addition to key system parameters and upgrades. While UMA’s methodology minimizes on-chain worth requests, it doesn’t remove them fully. As a end result, when contract interactions are disputed, UMA token holders will have the ability to fulfill the worth requests through the Data Verification Mechanism (DVM).

The UMA token will likely be listed on the Uniswap DEX at 15:00 UTC on Wednesday, April 29th. The preliminary itemizing will function a deposit with 2MM UMA tokens and $535,000 price of ETH right into a Uniswap pool by the Risk Labs Foundation. This successfully represents an preliminary itemizing worth of ~$zero.26 at an implied market cap of $26.67M for the UMA Network. This valuation is comparatively in keeping with different tokenized DeFi protocols like Aave at $37M and Ren Protocol at $51M.

According to Chris Burniske – a Partner at PlaceholderVC which invested in UMA – the $26.67M worth level is similar valuation that the protocol’s Seed Investors paid for. The indisputable fact that UMA is willingly permitting public DeFi buyers to take part in a token sale on the similar valuation because the protocol’s first spherical of buyers is a testomony to the workforce’s ethics and transparency. After all, UMA stands for Universal Market Access so it’s solely becoming that the token allocation will likely be universally accessible to the market on the similar valuation as preliminary buyers.

The Risk Labs Foundation has initially minted 100M UMA tokens. Therefore, the Foundation is planning on depositing 2% of the overall provide into Uniswap for public buyers to pay money for whereas retaining an extra 14.5M UMA for future token gross sales.

With that, 35M UMA will likely be distributed to builders and customers of the UMA community. Exact particulars surrounding this distribution haven’t been finalized so anticipate extra particulars and neighborhood discussions within the coming weeks.

Continuing on with UMA’s token allocation, 48.5M UMA tokens will likely be held by Risk Labs’ founders, early contributors, and buyers. This allocation can have switch restrictions in place till 2021 and all particular person token grants are topic to a Four-year vesting schedule.

In abstract, UMA’s 100M token allocation appears like this:

  • Initial Uniswap Listing: 2,000,000 (2%)
  • Future Token Sales: 14,500,000 (14.5%)
  • Developers and Users: 35,000,000 (35%) 
  • Founders, Early Contributors, and Investors: 48,500,000 (48.5%)

The protocol can even pay out an inflationary reward to token holders that take part in governance and reply precisely to cost requests. The basis is pledging to not vote with any tokens it controls and can forfeit all potential inflationary rewards.

Closing Thoughts

With UMA’s native token primarily representing governance rights over the protocol in addition to a backstop for worth feed disputes through the DVM, it’s obvious that DeFi Governance is changing into more and more extra vital for the proliferation of our nascent ecosystem.

In case you missed it, DeFi Rate has lately begun our journey into DeFi governance, beginning with Compound’s cash market protocol. The current announcement from Risk Labs is one other sign for us that we’re heading in the right direction and that the governance pattern shouldn’t be underestimated. As these protocols develop to bigger userbases, correct protocol governance will turn out to be more and more extra beneficial to the respective ecosystem.

That’s why we’re pursuing governance. Our intensive protection on the DeFi ecosystem provides us a front-row seat on rising tendencies and finest practices in open finance. We wish to affect these protocols in the suitable route, finally permitting them to proliferate into unstoppable monetary purposes for the world. With UMA’s native token itemizing coming subsequent week, our workforce will take a deep dive into UMA to raised perceive if our visions are aligned and decide if we’re a great match for the community’s governance.

It’s vital to notice that UMA tokens are usually not an funding alternative. In addition, UMA just isn’t dwell but on mainnet. The first artificial tokens constructed utilizing UMA’s priceless framework will likely be out there subsequent month on Ethereum mainnet. More particulars surrounding the launch will likely be launched quickly!

If you’re fascinated by studying extra about UMA, be at liberty to go to their web site. To keep updated UMA and its upcoming IUL, be sure to observe the official account on Twitter.

For all issues DeFi, join our publication!

Research Analyst at Fitzner Blockchain Consulting. Lucas has years of expertise working with a number of blockchain-based startups as head of neighborhood, blockchain strategist and mission supervisor the place he centered on token economics, writing, advertising, and development.

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