UMA, a protocol in the decentralized finance (DeFi) sector, has announced a new feature known as developer mining on its platform.
According to UMA, the new developer mining will enable the developers of projects built on UMA’s platform to earn rewards in specific tokens. The platform wants to create more synthetic assets using the number of successes recorded in liquidity mining and the decentralized finance sector.
This is coming after the hype in the DeFi ecosystem declined over time, prompting the UMA protocol developers, Risk Labs Foundation, to launch a new way for developers to earn.
Developers to earn a share of the 50,000 $UMA token prize weekly
UMA protocol says that it wants all new developers to build their latest synthetic on its platform, hence the rollout of the new ‘developer mining’ feature. Furthermore, the protocol has announced that developers stand a chance to earn 50,000 $UMA worth about $325,000 every week.
Giving insight into why the firm decided to use this medium to attract developers, UMA community development Head Clayton Roche explained in a blog post. Clayton Roche noted that developers’ rewards would depend on the amount of asset value locked in the contracts belonging to developers.
To break it down, it means a developer’s earning is dependent on how popular his project is on the platform. This means that developers with the most popular projects on the platform would earn from the weekly $325,000 price every week.
Also read:Developers will have to do more to get rewards on the platform compared to other liquidity mining platforms where developers lock in their tokens. Roche says he hopes that development would be encouraged in several ways when developers start flocking into the platform.
Furthermore, developers would be able to amass value for their projects through the rewards they get from the weekly prizes.
UMA protocol allocates 35% of the total UMA supply to the earning program
Roche also noted that this move would help both parties as the projects will experience massive patronage, and the UMA tokens will increase in value. Another thing that was mentioned by Roche is that the projects’ developers will be allowed to create any liquidity that they want.
Roche also noted that the developer mining strategy is different as he notes that liquidity is not loyal. He went further to say that it was not the company’s intention to buy liquidity as they wanted to encourage developers to provide liquidity for products that are used every day.
Even though Risk Labs has not defined how the weekly rewards will be shared, one constant thing is that the weekly cash price is there. Roche also noted that the money allocated for the program was about $250,000,000, which is equal to 35% of the total UMI token supply.
Even though the program’s cash reward is tempting on its own, Risk Labs are also using the program to boost the development of its platform in the DeFi space. The development team behind the platform says they want to use this new mining method to attract clients to a wide range of synthetic products.
However, the weekly rewards that are gotten by developers can be distributed among their non-dev users to facilitate the developer’s immediate business model.
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