💰Tokenomics

Zero Emissions & #RealYield

$UMAMI is the Umami protocol's community token. It has a fixed Max Supply of 1,000,000 and can be staked for a share of Umami's protocol revenues.

Umami offers tokenholders two staking options. Marinate rewards stakers with a share of protocol revenues in $wETH. Compound automatically reinvests $wETH to market-buy and stake more $UMAMI. $UMAMI is not an emissions token. No new $UMAMI tokens can be minted beyond its 1,000,000 Max Supply (of which around 650,000 are already in circulation).

About 105,000 non-circulating $UMAMI are permentently locked in defunct staking contracts and effectively "burned." The remainder are held in Umami's treasury and are reserved for future team compensation, DEX liquidity and (very limited) OTC capital raises.

The Umami treasury holds around $5 million in Protocol-owned Liquidity (PoL), which generates yield revenue to cover Umami's OpEx and bolsters liquidity in its Uniswap LPs. Umami has allocated ~20% of its total token supply to support current and future team comp.

Marinate Umami's Marinate product is the foundation of its #RealYield tokenomics. It delivers the value Umami creates from its fee-generating DeFi products to long term stakers in the form of passive-income in $wETH.

Deposits & Withdrawals

Marinators can deposit $UMAMI in exchange for $mUMAMI at any time throughout the month, but can only withdraw $UMAMI on the 1st of each month. Users can deposit $UMAMI into Marinate as often as they want, even if they have already deposited tokens.

Rewards

Marinators can claim $wETH rewards as soon as they are made available. Only the user holding $mUMAMI at the time of a reward issuance is eligible for that reward.

• $wETH rewards are trustlessly routed to Marinators from protocol fees.

• Rewards are paid primarily in $wETH, but Umami may also distribute other tokens as well in the future.

• Rewards can be collected from the UI by clicking "Collect Rewards" under the "Withdraw" tab.

Fungibility and Whitelisted Contracts

$mUMAMI is a fungible and composable asset. If $mUMAMI is deposited into a contract, the contract address must be whitelisted to be eligible for rewards. When $mUMAMI is deposited into non-whitelisted contracts it will NOT earn rewards. If you would like a contract whitelisted then please reach out to the team. Compound Users can further boost their returns by depositing into Umami’s alternative staking option, Compound. Compounding $UMAMI automatically uses $mUMAMI's $wETH rewards to market buy more $UMAMI and redeposit it into Umami's Marinate contract. Compounders receive a fungible receipt token, $cmUMAMI, that can be exchanged for $UMAMI on the 1st of each month. The yield accrued by $cmUMAMI is reflected as an increasing ratio of $cmUMAMI to $UMAMI.

Current And Future Fee Distribution

Once Umami launches its v2 Vaults in Q4 (see Roadmap) it will transition to a revenue sharing model based on fees revenue from its $USDC, $BTC, and $ETH Vaults. Umami will charge its Vault depositors Management Fees (approximately 2% of TVL) and Performance Fees (approximately 20% of APR).

Roughly half of that fee revenue will be kept in the Umami treasury to cover Operational Expenses and half will be trustlessly routed to $UMAMI stakers as $wETH.

Token Supply

Max Supply: 1,000,000 $UMAMI

Adjusted Max Supply: 895,865 $UMAMI (excludes permanently locked, or "dead," UMAMI tokens)

Note: Umami DAO's community voted in a May 26 Snapshot for a 1,000,000 Max Supply. However, per they snapshot vote, the DAO retains the ability to mint additional tokens under an extremely limited set of circumstances. Per the services agreement between Umami Labs and Umami DAO, which can be seen here, the Umami is contractually bound to respect the limits set in the community Snapshot.

For real-time supply figures please visit Umami.Finance.

Token Allocations To Current And Former Umami Team Members: 225,000 $UMAMI

Nearly all core Umami team members, current and past, received some allocation of $UMAMI tokens in linear-vesting smart contracts. All new Umami team members must complete a 3 month trial period before receiving an $UMAMI contract. Vesting periods for new hires begin at 24 months.

Further details on team members' employment terms and a collection of invoices for Operational Expenses, including for team comp, sent my Umami Labs to Umami DAO can be found here.