UMA –  the decentralized derivatives platform – has introduced a new incentivization structure designed to grow their community further called KPI (Keep Performance Indicators) Options.

KPI options are synthetic tokens that will pay out more rewards if the KPI meets predetermined targets before the preset expiry date. Thus, every KPI token holder is aligned in the sense that they would stand to earn more by collaborating to ensure the KPI is reached. The UMA team believes this will be a good way to reward the community for helping grow the underlying fundamentals of the protocol.

2M UMA tokens or approximately $60M have been allocated for this initiative. On June 30th, each option will be redeemable for UMA tokens using the following conversion: Option Value = TVL/100 Million X $UMA. Users can monitor the UMA TVL here.

These tokens will have a minimum value of 1 UMA each,  once the KPI target is hit a 20x multiplier be achieved and each token can be worth 20 UMA each.

KPI Option tokens will be airdropped to a set of curated DeFi wallets. Following announcements will reveal the rationale behind the airdrop selection and how users can claim their KPI tokens.

While UMA Protocol will be the first to test this mechanism, it is open for other protocols to use as well. If you are looking to create KPI options for your protocol, reach out to the team via [email protected] or join them on

The UMA team credits Alex Price, Chris Burniske, Chris Spadafora, Dan Robinson, Jakob Palmstierna and 0xMaki for inspiring this idea.

Keep up with UMA Protocol on Twitter.