Owners of UMA tokens have 2 major categories of responsibilities:
- Voting on price requests from financial contracts using the DVM
- Governing the UMA ecosystem by voting on parameter changes and approving system upgrades
Voters who participate and vote correctly earn an inflationary reward (currently 0.05% of total network token supply), distributed pro-rata by stake.
Voting on price requests
Owners of UMA tokens will occasionally be asked to vote on price requests from financial contracts in a 2-stage (commit and reveal) voting period. Each stage is open for 24 hours, so each voting period is 48 hours. They will have the opportunity to discuss their votes in the #voting channel of the UMA Slack before voting.
Governing the UMA ecosystem
Owners of UMA tokens govern 2 areas of the UMA ecosystem:
- Financial contracts depending on the DVM
- The UMA DVM
All governance issues will be addressed via an UMIP process. The UMIP process is detailed here.
Because UMA token owners will be responsible for voting on price requests from financial contracts depending on the DVM, they need to approve any price identifiers that they may be asked to opine on and any financial contracts that may create price requests. To that end, they need to:
- Approve new price identifiers
- Register and de-register contract templates
- Shut down contract instantiations in rare circumstances
Owners of UMA tokens also participate in governance of the DVM by upgrading the core DVM protocol and modifying DVM parameters.