UMA Developer mining is an incentives program designed to incentivize idea creation and ‘buidling’ on UMA, allowing devs to earn ownership in a network that they help create.
Starting on November 10th, the Risk Labs foundation will pay out 50,000 $UMA weekly to developers that deploy synthetic assets using UMA. Each developer’s share of the rewards will be weighted by the value locked in their synthetic asset contract: the more popular a synth is, the greater share of the weekly rewards that the developer will receive.
What can you build?
The types of products that can be built on UMA are at times overwhelmingly broad: you can build any type of financial contract, and that is admittedly vast (and exciting!).
Some product ideas to get you started:
- Synthetic ETH gas product
- BTC volatilility tracker (a "crypto VIX")
- San Francisco Real Estate prices tracker
- A gold futures contract
These ideas are still "up for grabs" but are by no means the limits of what a developer could build or receive rewards for. Developers are encouraged to ideate on their own ideas and, when ready, follow the steps below to get started.
The ideas above, along with any other financial contract idea a developer can think of, are still "up for grabs". To get started, a developer should settle on an idea to build, test the contract idea by launching a contract with UMA's Kovan contracts and then apply to the developer mining whitelist. The whitelist is a lightweight process and is primarily intended to discourage non-productive products, such as ones that might be designed to soak up rewards but with no actual utility or transfer of risk.
Whitelisted developer mining participants include:
Designing your own incentives program
One goal of developer mining program is that developers will try to attract capital to their contract by designing their own incentives program. Using the rewards that they receive from developer mining, a developer could grow the usage of their contract by rewarding behavior such as providing liquidity or having the community build specialized dapps. An example split of what a developer might use their rewards for would be:
- 10% as profit for the core contract development team
- 50% to liquidity mining
- 40% to other developers who build better dapps
Allocating rewards in such a way would allow a contract deployer to handle the financial design, contract deployment and initial bare-bones dapp creation, and then use $UMA rewards to incentivize token liquidity and improvements of their product/dapp experience.