UMA is a blockchain oracle and dispute arbitration system on the Optimistic blockchain. UMA's oracle system provides data for various projects including cross-chain bridges, insurance protocols, custom derivatives, and prediction markets. Two notable projects that use UMA are Outcome, a DAO tooling platform built on UMA, and Across, a cross-chain asset bridge secured by UMA.
How UMA (UMA) Works
UMA allows contracts to quickly request and receive data information. It acts as a relayer between contracts that initiate a price request and UMA's dispute resolution system known as the Data Verification Mechanism (DVM).
When a contract requests a price, UMA sends it to the DVM. If there is a problem, the DVM proposes a vote to UMA token holders who then report the price of the asset at a specific time.
The DVM is important because it uses human judgment to make sure contracts are managed safely and correctly, especially during volatile market conditions.
The UMA protocol is powered by the native token of the same name, UMA token. It is used to vote on changes and disputes related to UMA, such as responding to price requests, approving new prices and currencies, upgrading the core DVM protocol, and stopping bad contracts. The token is important because it helps keep the smart contracts and oracle system secure. The DVM makes sure that it would cost more to cheat the system than the potential gain, and voters get rewarded with more tokens.
How Many UMA (UMA) Tokens Are in Circulation?
UMA token has a total supply of 108,858,567, among which 68,947,415 tokens are being circulated.
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UMA (UMA) Resources
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