$ rUMB
MEANING OF A TOKEN?
Technically, “token” is just another word for “cryptocurrency” or “cryptoasset.” But increasingly it has taken on a couple of more specific meanings depending on context. The first is to describe all cryptocurrencies besides Bitcoin and Ethereum (even though they are technically also tokens). The second is to describe certain digital assets that run on top of another cryptocurrencies’ blockchain, as many decentralized finance (or DeFi) tokens do. Tokens have a huge range of potential functions, from helping make decentralized exchanges possible to selling rare items in video games. But they can all be traded or held like any other cryptocurrency.
“Token” is a word that you hear a lot in cryptocurrency. In fact, you might hear Bitcoin described as a “crypto token” or something similar,
WHAT IS A TOKENOMICS?
Tokenomics is the study of how cryptocurrencies work within the broader ecosystem. This includes such things like token distribution as well as how they can be used to incentivize positive behaviour in the network. Tokenomics is the science of the token economy. It covers all aspects involving a coin’s creation, management, and sometimes removal from a network.
In the blockchain and cryptocurrency world, there are a lot of factors an investor must consider before investing in any project’s token and one of them is the tokenomics. The main aim of this article is to highlight every details of $UMB in order to enable investors have a clear picture of what this token represents as well as its utilities, Getting a clear knowledge on how it works is the main reason i explained the meaning of TOKEN AND TOKENOMICS to help us understand better the context of this article.
NOW LET DISCUSS THE TOKENOMICS OF UMBRELLA NETWORK
UMBRELLA NETWORK is a scalable, cost-efficient, and community-owned oracle for the DeFi and blockchain community. Its Layer 2 technology uses the latest advances in Merkle tree technology to write multiple data points on a single on-chain transaction, allowing for the batching of data to smart contracts accurately, securely, and inexpensively. Umbrella Network’s tokenomics are very focused on promoting long-term token holding instead of short-term speculators. So with that in mind, everything is designed to put tokens directly into the hands of our community which includes the public token buyers, developers on the network, validators running the system, and our data partners. $UMB is is the governance token of the UMBRELLA network project and it’s currently exchange tradable cryptocurrencies that are currently available as ERC20 and BEP20 variants across multiple centralized and decentralized exchanges..
Let’s have a look at the functions and utilities of this token.
- $UMB to be used in Delegated Proof of Stake as a voting token towards delegated governance
- $UMB to be used to earn rewards and share of user fees
- Token holders will be able to participate in governance via validator delegates
- Total Max Token supply of 500 million $UMB
- Long term vesting schedules (> 70% of total token supply will have 4 year linear vesting)
- Initial Market Capitalization of ~$91M, based on current price
$UMB Token holders will have the option to stake their tokens with a validator of their choosing in order to participate in the governance of the Umbrella Network. The validator will act as their selected representative, and will be able to use the staked tokens to earn rewards and fees in the Proof of Stake consensus elections. Those fees will then be distributed to the original token stake. At no time will the validator have custody of the tokens.
The rewards are distributed, however, in a different form called $rUMB tokens or Umbrella Reward Tokens. $rUMB reward tokens are designed to incentivize long-term holding.
What is $rUMB ?
rUMB are the reward tokens that are generated and distributed to incentivize the staking of UMB tokens for data validation. rUMB tokens are an Umbrella Network innovation to help promote long term holding of our project token. rUMB can be converted into UMB only on the achievement of certain milestones.
The first of these milestones has just been announced — the day the cumulative number of data points written as FCD and L2D crosses 40M on any single support blockchain over any consecutive 7 days, the ability to convert rUMB to UMB on a 1:1 basis shall be unlocked.
read on how to stake umbrella network token here or watch a video here
For any inquiries, please contact us at marketing@umb.network
