Tokenomics Recommendations

Your tokenomics are set before launch and reviewed with the Umia team during formation (see the Legal Framework). This page collects some of our recommendations for what works: the principles behind a token structure that keeps founder and community aligned long after the auction ends.

Start Lean: The Fluid Capital Principle

The single biggest change from conventional token design: on Umia, you don't need to pre-allocate supply for everything you might ever do. Because supply decisions run through decision markets, more tokens can be minted later, for a follow-on auction, an ecosystem program, or team incentives, whenever the market supports the proposal.

That changes the starting shape. Conventional launches reserve large treasuries and future-use allocations upfront, which sit as dead weight from day one and force the low-float launch pattern that communities have learned to distrust. An Umia project can launch with a lean, honest distribution: sell what the auction needs, reserve what the near term requires, and let everything else be a future governance decision rather than a day-one lockup.

Allocations: What to Size and How to Think About It

The buckets every project needs to size:

• Public sale: what the auction distributes. The more of the initial supply is allocated to the Tailored Auction, the easier it will be to convince the community to participate in this and following markets.
• Liquidity: the share reserved to seed the Uniswap v4 pool at the discovered price. Non-negotiable in structure, sized per launch.
• Team: kept honest by vesting (below). Oversized team allocations are the most common reason communities discount a launch before it starts. We recommend making this allocation as lean as possible, and then suggesting performance-based team compensation through decision markets.
• Treasury / runway: enough for a credible development runway at your monthly budget. Deliberately not more: an oversized treasury is exactly what the fluid capital model makes unnecessary.
• Umia protocol allocation: on the Community Track, a fixed share of supply granted to the Umia protocol treasury at TGE, enforced programmatically (see Curated and Community Tracks).

The whole table must reconcile to 100% of supply before launch.

Team Vesting

Vest the team on MetaVesT rails, and prefer milestone-based unlocks over purely time-based ones where you can define milestones that are objective and verifiable onchain. Time-based vesting says "we'll still be here"; milestone-based vesting says "we'll have done what we said". The second is a much stronger signal to your community, and it's enforced by condition contracts rather than promises.

Practical defaults: a meaningful cliff before anything unlocks, multi-year total duration, and unlock schedules that avoid concentrating large amounts into narrow windows. Performance-linked structures (including unlocks tied to sustained market measures) are possible and increasingly the norm on Umia, but their design and public description must go through Legal review first.

The Monthly Allowance

Your treasury's monthly operating allowance is set at formation, with recipient addresses and purpose limits. Set it realistically: it's what you can spend without governance, and everything beyond it becomes a decision-market proposal. An allowance set too low turns routine operations into governance events; set too high, it undermines the credibility the noncustodial treasury exists to provide. Size it to your actual burn for development and go-to-market, and revisit it through governance as the project grows.

Common Pitfalls

• Over-allocating to the team. The market reads it instantly, and it poisons everything downstream.
• A thin community float. If holders can't meaningfully participate in decision markets, your governance has no signal and your community has no voice.
• No treasury runway. Forced to return to governance for basics within weeks of launching.
• Cliff dumps. A large cliff that unlocks in one moment creates the exact event your unlock schedule exists to prevent. Smooth it.
• Pre-allocated dead weight. Reserving supply for hypothetical future programs, the fluid capital model exists so you don't have to.