Huma Protocol, a platform in the new PayFi sector, has officially announced its tokenomics and first season airdrop plan for the HUMA token.

The project has attracted the attention of numerous venture capital firms, as the PayFi sector is considered extremely promising. However, the current market context indicates that retail investors are paying less attention to traditional airdrop formats.

Huma Finance allocates 5% among users

PayFi combines instant payments with decentralized finance (DeFi), using blockchain technology to ensure fast, efficient, and cost-effective financial transactions.

Huma Protocol aims to lead this trend by integrating DeFi with real-world assets (RWA). The team has developed the HUMA token to serve both utility and governance functions, encouraging community participation to ensure long-term benefits for stakeholders, including users, liquidity providers (LPs), partners, and developers.

Huma Protocol has revealed its first season airdrop plan, allocating 5% of the total HUMA tokens (500 million tokens) for loyal users. However, many comment that this allocation seems quite low. Despite the criticism, Huma Foundation emphasized that this is just the beginning. The foundation has planned a second airdrop, allocating 2.1% of the total amount, approximately three months after the token generation event (TGE).

Additionally, the total supply of HUMA tokens is capped at 10 billion, with an initial circulating supply of 17.33%.

Token distribution includes:

  • 31% for liquidity providers and the ecosystem,

  • 20.6% for investors,

  • 19.3% for the team and advisors,

  • 11.1% for the protocol treasury.

Additionally, the release schedule will continue until the end of 2029. Tokens allocated for the team and investors will be locked for 12 months, after which a three-year vesting period will commence. Allocations for LPs and the ecosystem will decrease by 7% each quarter. These rates may be adjusted through protocol governance.

Huma Finance: Opportunities and Challenges

Huma Protocol is expanding as PayFi gains momentum. As governments develop crypto-friendly policies for cryptocurrencies and stablecoins, crypto payments could become a major alternative to traditional systems.

"Web2 has many problems, and a centralized payment network is one of them. Slow transactions, high fees, and lack of user control. But now there is a solution. Huma Finance is the first PayFi network aiming to accelerate global payments with instant access to liquidity anytime and anywhere," investor Niels noted.

According to a Coingecko report citing research from Mordor Intelligence, the global payment financing market is expected to reach $2.85 trillion by 2024 and grow to $4.78 trillion by 2029. This gives early players like Huma Protocol a competitive advantage. The project has raised over $46 million from investors such as Haskey Capital and Circle.

However, the current market conditions have failed to provide Huma with a strong initial momentum. Low airdrop allocations and changing user interests, driven by new models like Binance Alpha, have made traditional airdrops less attractive.