Tokenomics Overview

The UMBI Protocol uses a dual-token system designed to balance risk-sharing, fundraising, profit distribution, and governance. Each token type plays a distinct role within the ecosystem:

• FarmNFT (ERC-1155) - Represents shared ownership and operational rights of specific farms.
  Purpose: Enable fundraising for farmers, allow investors to share in farm revenue, and spread risk across multiple participants. FarmNFT holders earn a portion of farm income, while also benefiting from compensation mechanisms (escrow) if operations ends.

• UMBI Token (ERC-20) - The governance and utility token of the protocol.
  Purpose: Power the protocol, align long-term incentives, and decentralize decision-making.
  UMBI token holders can:

  • Build the Protocol - The UMBI Foundation may fundraise through token allocation to support core development, security audits, bug bounty programs, and community engagement initiatives.
  • Earn Protocol Share - By staking UMBI, users receive a share of the protocol’s rewards, sourced from the treasury allocation of farm profits.
  • Govern - Staked UMBI gives holders voting power to decide on protocol parameters (gauges), foundation leadership, and new farm onboarding.

Together, ERC-1155 NFTs provide real-world exposure to farm revenue, while ERC-20 UMBI tokens sustain, incentivize, and govern the protocol.