UME yield-farming —
UME has gone through a vote and the farming output has been reduced with 50% which was decided upon by the community.
The UME token on the Tron network is the native governance token used on the Uswap decentralized cryptocurrency exchange.
UME is the only token needed to use our launch pad and participate in future Initial Dex offerings (IDO’s). This allows you to purchase new tokens in a pre-sale from up-and-coming third-party projects and protocols.
There is currently a total supply of 23 million UME tokens and all UME is being distributed to users who provide liquidity to Uswap DEX. Upcoming changes to UME will lead to a deflationary economic model.
Why do users provide liquidity to a DEX?
Defi allows you the ability to earn a passive income. This feature has attracted many users to USWAP as a result users will begin to see a rise in total liquidity.
Uswap liquidity providers receive an LP token (liquidity provider token) that can be staked to yield farm more UME tokens. The purpose of this medium article is to inform all of our users and future investors of 4 positive upcoming changes to the UME token and touch on deflationary economics that will affect the UME token.
1. UME monthly output reduced by 50%
Recently the community and holders of UME tokens voted to reduce the monthly yield farming speed.
After the vote, the community decided on a 50% reduction of the UME monthly output!
The output of UME farmed decreased from 240,000 UME/month to 120,000 UME.
This will lead to a positive price appreciation in the UME token as less UME will be released.
2. The UME liquidity farming fee will be completely removed on September 27th, 2021.
Yield farmers will now earn UME without any additional costs.
The second positive change is the reduction in the stacking fees. This change increases the potential profits users of USWAP will earn going forward.
3. Freezing of UME and EFT will be eliminated.
When providing liquidity to USWAP 50% of one token and 50% of another is all you need to begin yield farming.
The previous mandatory freeze will now be completely removed from the yield-farming of UME starting from Monday, September 27th.
This means that if a liquidity provider wants to provide liquidity in a non UME / EFT paired pool there is no longer a need to already have and freeze UME or EFT tokens in order to farm UME.
4. Continued Burning of UME tokens!
50% of the UME raised in all pre-sales of all upcoming IDO’s will be used as locked liquidity for any new projects.
The remaining 50% UME will be instantly burned off the market further decreasing the total UME supply.
A decrease in the total supply of UME may assist in price appreciation as well.
In summary, moving forward there will be 50% less UME being yield farmed every month, an increased amount of liquidity providers joining USWAP and upcoming partnerships with new investors who will purchase UME to participate in IDO pre-sales.
The new deflationary economic model will create both higher demand and increase scarcity of UME which will positively impact the price of UME as the Uswap community grows.
Additional deflationary changes are also being discussed for UME so stay tuned as there are many more announcements planned for USWAP and UME.
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