Superumans #52 - Staking, Voting And Solving Disputes With UMA Tokens

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Written by

#Club1BCH

8 months ago

Topics: UmA, Life, Cryptocurrency, Ethereum, Voting, ...

UMA 2.0 went live in March, introducing token staking and the voting mechanics that will reward the users regardless of the number of votes. Staked $UMA gives the holder voting power and the option to help settle disputes.

The staking rewards will be streamed continuously, immediately after staking the UMA tokens, getting higher 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 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 Oracle was upgraded to V3 and is now able to validated easier if statements are either true or false! This means that developers can use any data source, such as an API or other data feed, and use UMA to both put the data on-chain and publicly guarantee it against manipulation.

The smart contracts and DeFi applications can now solve grey area disputes and validated information about the world. The OOv3 introduced a new logic pattern for UMA’s optimistic oracle, that of an “assertion pattern". The new system replaced the “question-and-answer" dispute mechanics.

Back to voting & staking, where I can use my tokens to vote in disputes. My 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.

It was just a formality and watched my earnings based on participation grew to 2.60, with the APR improving to 27.53% thanks to the 0.14% bonus obtained from 5 correct votes.

Yes, you need $ETH to pay for the votes, and for the reveal, but what you spend is sent back to the voters on a monthly basis. The amount of ETH spent of gas was distributed back in $UMA, until it was changed in July. You pay in ETH and you receive ETH back! Simple!

One of the biggest votes in Q2 was the Polymarket dispute regarding Donald Trump. The dilemma was the former POTUS was indicated, or this should settle as NO because the vote was still in a sealed envelop!

The debate was fierce and I voted YES, as the rationale was clear and a decision was made. For me Donald J. Trump was indicated, and after everyone revealed the vote... the dispute was settled as YES!

I had 11 consecutive correct votes and the farming APY stayed above 27%, thanks to the bonus earned for efficiency and participation. Everything was going well... until it didn't go well! Boom... gwei went crazy and $PEPE broke the internet!

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 Ethereum blockchain got clogged after the Pepe hype and the gas fees went as high as $150 per transaction. Even if you get back the crypto spent on votes, I am not Vitalik to think that kind of fee is affordable. I didn't vote for the next four disputes and lost 1.83 per round, with my farming bonus turning into a penalty!

The earnings based on participation turned negative, losing 1.79 UMA after 16 votes. My bonus was gone and I now had a -0.09% farming penalty. The return on my staked tokens was still beyond expectations, earning tokens at 26.62% APY.

The gwei came back to normal values, and I was able to cast my vote on a NBA dispute. Golden State Warriors v Sacramento Kings was an easy vote, early dispute and the opportunity to get back on track!

The earnings based on participation and my penalty is low, but my total $UMA rewards are sweet! I accumulated 74.5 tokens during quarter 2, and the amount could have been even bigger if I didn't skipped four votes. The future is bright and the way UMA evolves the Cryptoverse is mind-blowing!

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