Superumans #49 - UMA 2.0 Voting Review
March was a big month for the UMA token holders, as UMA 2.0 went live. The UMA 2.0 mechanics will overhaul the token rewards system as the users will earn regardless of the number of votes, with the possibility to stake and help settle disputes.
The staking rewards will be streamed continuously and will begin immediately after staking the UMA tokens. It will get higher (est. 27% APR) or lower as the voters will experience reward reallocation depending on whether they vote consistently and accurately as part of UMA's optimistic oracle DVM.
The "Stakening" event on the UMA Discord was a ceremony where the "stakers" went on stage to affirm their dedication to uphold the truth. The participants received The Stakening POAP, and this is how I got to be the proud owner of mint #1!
The UMA Stakeining created a new synergy between token holders and the voting mechanism, as 20 million tokens were staked. The amount represents 28.4% of UMA's circulating supply!
The first vote was to updated the UMA emissions at 0.18 UMA per second, where I voted Yes and revealed my choice. The vote must be casted in 24 hours, and it has to be revealed in another 24 period to receive rewards.
The earnings based on participation went to 0.08 after voting for the UMA emissions updated. All voters will receive continuous emissions reward for the staked tokens, with a higher performance rate for correct votes.
A voter will lose a small portion of their stake per missed or wrong votes, which is reallocated pro-rata to those that voted correctly.
The APR went to 28.5% after the first vote, and my unclaimed UMA reward after 2 days was 1.29 tokens. I got hooked up by the innovative way of staking and voting, and was looking forward to solve disputes.
The disputes that the UMA's Optimistic Oracle has to solve are coming from Polymarket, the web3 prediction market that covers a plethora of sporting, political and social events.
Polymarket is using UMA's support to decentralize prediction markets and solve problems associated with traditional venues, creating an open and trustless alternative. Any user with a web3 wallet can bet on events and receive fair rewards if the bet is correct.
The Optimistic Oracle helped prediction markets because it can determine any truth. The OO will verify any smart contract data, offering versatility to power markets predicting absolutely everything ... from the next US President, the SuperBowl winner, Oscar awards to and any other outcome.
The Optimistic Oracle differs from Chainlink and other traditional oracles because it has the ability to find the truth for ANY outcome, easily solving "gray area" disputes when there is no categorical right or wrong case.
The next votes arrived, with two early requests from the NHL and NBA. Voted on both and made sure I revealed my vote, adding more rewards in the bag.
The APR rate was at 27.6% after 3 votes, and my unclaimed UMA rewards grew to 15.497 tokens. The earnings based on participation grew at 0.41 and my bonus changed from zero to 0.02% as the result of the correct voting streak.
Boom! The Arbitrum airdrop was announced, and somehow this got disputed. For me it was clear that this could only be settle as an YES, and this is what I voted. Another dispute regarding the FED cut rates had to be sorted, which was settled as an early request.
Got both correct and watched my earnings based on participation grew to 2.60. My APR improved to 27.53% thanks to the 0.14% bonus obtained from 5 correct votes.
I like the way token holders are helping the Optimistic Oracle to solve disputes, and how the rewards are enhanced by participation. UMA keeps improving the Cryptoverse, and this is mirrored by the work behind the scenes. The number of Github commits increased by 198% in March, as the devs were working hard to make UMA 2.0 work perfectly.
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