Umbrella Network
Crypto Overview
Project Overview
Umbrella Network is a decentralized oracle project launched in 2021 that aims to provide scalable, cost-effective, and accurate data feeds for blockchain applications. The UMB token serves as the network's native cryptocurrency used for governance, staking, and paying for oracle services.
Intended Purpose & Utility
The primary utility of UMB tokens includes: Staking to become a validator node, participating in governance decisions about the network's development, and paying for oracle data services. Node operators must stake UMB tokens to participate in the consensus mechanism and earn rewards for providing accurate data.
Business Model & Implementation
The project operates a Layer-2 oracle solution using a proof-of-stake consensus mechanism. Validators stake UMB tokens to participate in providing off-chain data to blockchain applications. The network aggregates multiple data sources to ensure accuracy and uses an innovative 'merkle tree' technology to reduce transaction costs.
Real World Adoption
The project has established partnerships with several DeFi protocols and blockchain platforms that utilize its oracle services. While adoption remains in early stages, there is documented usage of the oracle network for price feeds and other data services. The development team maintains regular updates and improvements to the protocol.
Token Distribution & Governance
The initial token distribution included allocations for team members and early investors with standard vesting periods. The project maintains transparency about token economics and distribution schedules. Governance rights are distributed among token holders who can participate in protocol decisions.
Crypto Impact
To assign a comfort level investing in Umbrella Network from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Umbrella Network.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
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