UMA

Roles

Procedure

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Data Verification Mechanism (DVM)

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Attack-Resistant Mechanism

The DVM ensures the price to obtain 51% of UMA tokens is greater than the profit from corrupting the DVM, as measured by the collateral stored in UMA's financial contracts. This is achieved through an inflationary reward (currently 0.05% of total network token supply), distributed pro-rata by stake to voters who participate and vote correctly. As long as there is an honest majority, voters will vote correctly.

Potential Risks

Kleros and UMA