Umbrella Network Announces UMB Staking And Rewards Platform Upcoming Launch
By: John Chen
Tags: Staking, Oracle, Umbrella Network News, Defi, Umbrella Network Rewards

What a week it has been. So many incredible things have happened before, during and after our IDO. But out of all the things that have occurred in the last 7 days, we are most excited about the growth of our community. Our Telegram and Twitter accounts are at levels we never would have imagined just a few weeks ago. Since the IDO, the number of $UMB holders grew from 0 to over 5000, in just a few days. And we look forward to increasing the pool further as we welcome our newest friends from the Bounce Financial NFT lottery.

UMB Holders Feb 9th–12th

With the IDO now successfully behind us, it’s now time to turn the page and focus on our growth strategy which includes:

Building our community engagement Launching the product Building more partnerships Increasing the usage of our oracle Evangelizing the product

Today, we are excited to announce the first step in this process. The opportunity to reward those who supported us by buying our tokens in the IDO or in the open market has special significance for us. Last week, we announced our token reward system in our Medium post Primer on rUMB. It’s understandable if you missed it given all of the excitement and news around the IDO. Please take a minute to read that blog, if you have not already, before continuing.

The rewards for staking will be unlocked daily and stakers will be able to withdraw their tokens and their rewards at any time.

Starting early next week, we will be rewarding our community of token holders with a fixed number of reward tokens — 111,872 rUMB per day, irrespective of the amount of total tokens staked or circulating token supply. They will be distributed on a pro rata basis to each staker according to the number of tokens being staked.

After removing tokens that are locked up in the Foundation’s AMM Reserves, Uniswap AMM and other reserves, there are currently an estimated 13,500,000 tokens in circulation. This is subject to grow as more tokens are steadily unlocked based on various vesting schedules. Based on the yield of the new rUMB and assuming 1:1 value, the following are the expected yields at the launch of $UMB token staking and rewarding.

Yield calculations based on circulating token supply as of 12th Feb 2021

While it is possible, we believe it highly unlikely that 100% of eligible tokens will be staked. Some will choose to provide liquidity on Uniswap or other AMMs. Others will hold it in their wallet to trade actively or just hold. Undoubtedly, token yields are quite high regardless of the staking rates. 302% is the lowest staking rate while it could be as high as 1210% if only 25% of the community decides to stake their tokens. The yield calculations are a snapshot based on the current token supply as of 12th Feb 2021. The supply is expected to inflate with linear vesting and the yield figures will vary with time based on how many total tokens are being staked.

Daily rewards can be calculated by the equation below, you will have to substitute the number of UMB tokens for User Stake and Total Staked.

Staking Reward per Day = (User Stake / Total Staked) * 111,872

Let’s take an example. If you are looking to stake 10,000 tokens, and the total tokens in stake that day is 5,000,000, then you would be looking to receive daily rewards of

(10,000 / 5,000,000) * 111,872 = 223.744 rUMB per day

223.744 rUMB from 10,000 tokens staked is a 2.23744% daily yield.

The rewards will be in the form of rUMB1 tokens. rUMB1 will run for 12 months, and subsequently be replaced with rUMB2. You can refer to our post Primer on rUMB for more information on how rUMB works.

Staking is currently scheduled to start Monday 15th Feb 2021. The UMB token will be at the epicenter of Umbrella Network and there will be many new utilities revealed as we continue our journey to build the world’s first truly community-owned and decentralized oracle. Beyond staking and farming, UMB tokens will also be used to qualify for becoming a validator, for running a node, for general governance, and for using the Umbrella Network oracles.

Again, thanks to our community for your continued support. The staking and rewards platform is just one more component to incentivize and engage our community, as we look to fulfill our mission to bring the world’s data on chain.