Umbrella Network Community Proposal: Transition away from rUMB rewards and burn 50mm UMB tokens

Background:

Our current rewards programs (Hadley, Polar and Astro) distribute rewards in rUMB tokens (rUMB1, rUMB2, rUMB3, & rUMB4) and these can be eventually converted to UMB on a 1:1 basis.

Proposed changes:

• By around February 2023, rUMB to be discontinued and all future staking programs to emit UMB as rewards (existing rUMB1/rUMB2 tokens can be converted to UMB on a 1:1 basis via the conversion module: https://staking.umb.network/redeem/hadley/rumb1 ).
• Astro 6-month to be discontinued, Hadley stream, Polar, and Astro 12-month to continue for participants with UMB emitted as rewards.
• Daily emissions of UMB proposed to be reduced to approximately ¼ of current daily emissions i.e. current rewards per year is approx. 40.8mm, and this will be spread out to approx 10.2mm per year over the next 3 years.
• Burn 50mm of the future rewards tokens (approx 10% of total supply), reducing max supply from approx. 497.5mm to 447.5mm.

Rationale:

Transition to UMB will remove the rUMB rewards token entirely, and allow the community to be better aligned with the UMB utility token.

Burn will reduce future supply of UMB and inflation in the long run.

Impact and benefits:

• Streamlined rewards program using a single token;
• Increased value and support for the Umbrella Network community.

Implementation details:

Conversion process and timeline for rUMB to UMB will be announced after the vote and implemented by February 2023.

While the burn of 50mm tokens will be executed according to a transparent and verifiable process.

Timeline:

Proposed changes to be voted on by the Umbrella Network community. If approved, transition and burn will be implemented by February 2023.

About Umbrella Network

Umbrella Network is a scalable, decentralized, and community-owned oracle that utilizes Layer 2 technology to integrate real-time data into smart contracts that is secure, scalable and cost effective. Umbrella Network brings the world’s data to the blockchain to enable applications to perform at the optimum level regarding precise information dissemination. We believe a decentralized oracle is paramount to creating a truly decentralized blockchain ecosystem.

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