Victor Ugochukwu · Dec 14, 2020 . 5min read
Risk Labs Announces Gas Fee Relief Program to Promote UMA Governance Tokens
Risk Labs declares gas rebate program to promote UMA's governance votes. UMA is an entity affiliated to Risk Labs.
By Komal Joshi · Sep 16, 2020 . 5min read
According to a blog post, Risk Labs, the foundation supporting UMA ecosystem, today declared a program to offer gas fee relief for UMA protocol governance votes. UMA (universal market access), is a protocol developed on Ethereum. It allows users to create custom collateralized synthetic cryptocurrency tokens. Additionally, UMA enables trading any asset utilizing ERC-20 tokens without having an original appearance to the asset itself. This allows people to gain exposure to assets that are out of reach.
The aim behind providing gas fee relief in return of UMA protocol governance votes includes developing voter turnout, achieving goodwill among the UMA community members, increasing the chances that farmers will transform into voters. It also aims to create qualitative voter participation.
Comprehensive Details on Eligibility to Vote
Through the program, it strives to promote the broader distribution of token. It aims to place the token into the right hands of governance participants. According to the blog post, the program will award the participants who are voting. The primary purpose of the reward remains to promote the participants to vote. Risk Labs further enlightens on the eligibility for the gas rebates. Additionally, the eligibility criteria enable democratic participation.
The blog post states that any voter who unveils the vote is qualified for rewards. The reward doesn’t depend on the majority votes chimed. Additionally, this program does not incorporate a 2-key voting setup. Moreover, it does not involve any other fees associated with $UMA token transfers. Besides, liquidity mining rewards, voting rewards will be awarded.
According to Risk Labs, Gas fees serve as a fixed cost to voting. Thus, the rewards are comparable to token balances. The new program will reimburse gas fees paid for governance and price request votes. Moreover, the UMA’s governance is incentive-based. Thus, any voter who votes accurately will be rewarded with a share of the .05% total supply inflation.
Earlier, the UMA project, after its DEX offering on Uniswap traversed $1B market capitalization. Thus, it became the second DeFi project to reach this milestone. According to the data from Coinmarketcap, UMA token ranked second after Chainlink’s LINK token with $1.07B in capitalization.
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