Umbrella
  • Umbrella
    • The Next Billion Users
    • A Layer 0 Technology
    • A 5th Generation Blockchain Network
    • Competitive Comparison
    • The Problems With Web3
    • Umbrella's Users
  • Features
    • Scalability
    • Security
    • A Different Approach to Wallets
    • Fully Decentralized
    • Modular and Composable
    • Gasless Transactions for Users
  • Tokenomic & Economic Theory
    • $UMBRA Tokenomics
    • Incentivization Structures
    • Umbrella Economics
  • Products, Tokens, and Integrations
  • Governance
    • Umbrella Governance Model
    • DAOs as a Service (DaaS)
    • DAO Organizational Design
    • DAO - Legal Structure
    • Contribution Management
    • Compensation
    • Decision Making
    • Treasury management
    • DAO Analytics
  • Functionality
    • Identity Layer
    • Network Map
    • Consensus Layer
    • Validation
    • Private/Side Chains
    • Programming Environments
  • Networks and RPCs
  • Note on FTX and The State of Crypto
  • Who We Are: Umbrella Labs
    • Investing, Supporting, or Building with Umbrella Labs
  • Official Links
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On this page
  • Incentivized Testnet
  • Mainnet Incentive Model
  • Proof of Stake
  • Validating Nodes
  • Developers
  • Investors
  • End Users
  1. Tokenomic & Economic Theory

Incentivization Structures

Incentivized Testnet

Rewards are granted for running nodes and interacting with the network in meaningful ways.

At the end of the testnet period, results are gathered and used to award tokens on mainnet launch

Mainnet Incentive Model

Proof of Stake

Staking secures the network and is therefore rewarded with:

  1. Inflation at a rate of 8% and decreases year-by-year

Validating Nodes

  1. Network fees collected by developers hosting applications

  2. Participating in PoS System (inflation)

Developers

  1. Inflation rewards for top developers

Investors

  1. Can participate in PoS system

  2. Can add liquidity to the protocol DEX and CrossChain Relayer

End Users

  1. Can participate in PoS system

  2. Incentivized for participating in application ecosystems

Continue on to the Tokenomics section to read more specifics.

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Last updated 2 years ago