The Huma Foundation is proud to reveal the comprehensive tokenomics of the Huma Protocol, marking another step in redefining the future of PayFi. The launch of Season 1 marks a crucial milestone in our collective journey and lays the groundwork for a sustainable and community-driven ecosystem.
At the center of this ecosystem is HUMA, the native utility and governance token, carefully designed to align long-term incentives among all users, liquidity providers, partners, builders, and stakeholders. HUMA aims to enable decentralized governance over optimizing protocol parameters and value distribution mechanisms.
In the following sections, we describe the utilities of the token and the strategic allocation of HUMA to promote sustainable growth, maintain robust liquidity, and ensure strong community alignment.
Utilities of the $HUMA Token
HUMA is the native utility and governance token of the Huma ecosystem, with the following main utilities:
Governance
HUMA token holders can stake their tokens to participate in the protocol governance. The duration of the stake determines the voting power, encouraging long-term alignment with the protocol. Stakers have the right to vote on important decisions, including liquidity allocation and ecosystem incentives, adjustments to protocol parameters, and the distribution of protocol incentives.
LP Rewards and Ecosystem
The HUMA token plays a key role in the incentive program to drive adoption and spur growth throughout the Huma protocol ecosystem.
Liquidity providers (LPs) are rewarded with HUMA for committing capital to the protocol, with higher rewards granted for larger and long-term liquidity commitments.
Participants in $HUMA staking receive rewards through the staking multiplier and receive an additional boost to their LP positions.
Ecosystem partners earn HUMA relative to their contributions to critical KPIs, such as transaction volume and protocol revenues.
Community collaborators are also eligible to receive HUMA in recognition of efforts supporting community engagement, development, and overall ecosystem health.
Value Addition Mechanisms
We believe in shared prosperity, and the Huma Foundation is actively exploring sustainable mechanisms to effectively utilize protocol revenue in order to strengthen the PayFi movement. These mechanisms will be publicly designed with the community to align incentives, enhance long-term protocol value generation, and reward active participation in the ecosystem.
Ecosystem Currency
While the Huma Protocol continues to adopt stablecoin settlements for real-world transactions, the HUMA token will serve as a utility token to enable advanced protocol features introduced in the future, such as real-time redemption. The range of HUMA functionalities will continue to grow as the protocol evolves.
Analysis of the $Huma Tokenomics
The total initial supply of HUMA is 10,000,000,000 and will be capped at 10,000,000,000.
Initial airdrop (5%)
Rewarding loyal users and partners who have driven liquidity, transactions, and revenue growth for the Huma protocol, as well as collaborators who helped build a vibrant community and propelled the broader PayFi movement. We will address the key principles and the design of the airdrop in more detail in a separate article dedicated to the initial airdrop.
Liquidity Provider (LP) and Ecosystem Incentives (31%)
Driving the growth of the Huma ecosystem by rewarding the two essential pillars of the Huma protocol: LPs and PayFi asset originators.
LP and ecosystem incentives are combined into a single aggregated pool, as their relationship needs to be balanced through fair and market-dependent incentive allocations.
Deflationary quarterly disclosures. The protocol's governance can adjust the disclosure schedule through voting.
CEX Listings and Marketing (7%)
Dedicated to ensuring listings on top-tier centralized exchanges (CEXs) and executing global marketing campaigns.
Partnerships, collaborations, and community-driven initiatives will expand the reach of Huma and PayFi.
Market Maker and On-chain Liquidity (4%)
Stabilizing token volatility and maintaining healthy market dynamics through strategic partnerships with institutional market makers.
Ensuring deep liquidity in DEXs and CEXs to allow continuous trading and reduce slippage.
Pre-sales (2%)
Initial allocations for seed and Series A investors, subject to multi-year vesting schedules for alignment with long-term success.
Investors (20.6%)
Reserved for Seed and Series A investors, subject to multi-year vesting schedules for alignment with long-term success.
Team and advisors (19.3%)
Compensating key contributors and essential advisors for developing the best PayFi network, subject to multi-year vesting schedules.
Treasury Protocol (11.1%)
Driving future development, grants, partnerships, and protocol-owned liquidity.
Initial Circulating Supply
The initial circulating supply is 17.33%. The first four entries in the table below were explained in the previous section. The final entry is reserved for a potential token swap with a strategic partner.
Initial airdrop
5%
CEX and Marketing
7%
MM and On-chain Liquidity
4%
Treasury Protocol
1%
Token swap with a strategic partner
0.33%
Vesting Schedule
The Huma token vesting schedule is structured to support long-term commitment and ecosystem growth.
Team, advisors and investors are subject to a 12-month lock-up period, followed by a linear quarterly release over three years.
The LP and Ecosystem Allocations will follow a deflationary quarterly release model designed to reward LPs and ecosystem partners driving protocol revenue and transaction volume, as well as initiatives enhancing community engagement. The second airdrop is planned for approximately 3 months after the TGE, for 2.1% of the total supply. After the second airdrop, the LP and Ecosystem release schedule will decay at a rate of 7% each quarter. The scheduled decay rate may be adjusted by the protocol governance based on protocol dynamics and market conditions.
The Protocol Treasury will have 1% of its allocation unlocked at the TGE, with the remainder distributed through eight linear quarterly releases.
Commitment to Transparency
Our smart contracts are audited by leading blockchain security firms
Huma 2.0 for Solana by Halborn.
Huma Institutional for Solana by Halborn, for EVM by Spearbit, for Stellar Soroban by Certora.
Real-time token supply and allocation metrics will be publicly accessible.
Governance tools and processes will be announced a few months after the TGE, empowering HUMA holders to drive the future of PayFi.
@Huma Finance 🟣 #HumaFinance #HumaFinanceLaunch #HumaFinanceCoin #HUMAFINANCE🟣 $HUMA
