Uma announces a community airdrop. To further convince airdrop recipients to hold their tokens, UMA added growth incentives to the offering.

Synthetic asset creator UMA has announced the airdrop of its new incentivization mechanism called KPI Options, aiming to give those in the DeFi community incentive to contribute and grow the protocol. 

Airdrops are a community reward mechanism popular with decentralised projects. However, they often find their offerings dumped pretty quickly. To work around this, UMA’s plan is that those with the token will contribute to the protocol’s KPI to ensure their options grow as the value depends on the Total Value Locked (TVL) of the protocol. 

This is another in the novel rewards structures created by UMA. In 2020, the company released Developer Mining to encourage developers to build projects on its platform.

In an announcement on Medium, Hart Lambur, co-founder of UMA, explained how the airdrop would work and how those participating would be paid out. 

The team has committed 2 million UMA tokens (~$60 million) is shared with UMA and five DeFi governance communities, including Yearn, Yam, Sushi, BadgerDAO, and Balancer. The number of options given ranges from 60-120 per address, depending on their participation. 

The option token is set at a minimum value of 0.1 $UMA if the TVL is at $100 million or lower on the expiry date and a maximum of 2 $UMA if it reaches $2 billion or above.

With this pay-off, an airdrop of 90 KPI tokens and a TVL growth to $250 000 will be worth ~$500. The same 90 tokens will be worth $4500 at expiry if the TVL grows to $2 billion.

Currently, UMA’s TVL is sitting at $80,49 million.

Since the option is to get users using the UMA platform, the team has opened it up to a wide range of actions that they explain will align with that of the protocol. These include governance voting, minting tokens, holding UMA, and liquidity providing. 

The team announced the qualifying criteria for the option with the details on how to redeem your option tokens still to follow.

The post UMA Announces Novel Community Airdrop appeared first on BeInCrypto.

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