- A portion of the trading fees or other fees generated by the Unifi Protocol are pooled together and form the redemption value of UP tokens. UP holders also receive a share of the fees generated by other platforms created by any developer using the Unifi Protocol.
- The redemption value of UP tokens is the amount of base tokens the Unifi Protocol will return in exchange for the UP token. This redemption value of UP is verifiable on-chain, and increases every time a new UP token is minted (i.e. after every trade).
- During the UP minting process, an amount of base tokens (normally a percentage) are dedicated to raising the redemption value of all previously minted UP tokens.
- Every trade increases the redemption value of UP.
- As the Unifi Protocol matures and the community grows, UP tokens will be used to enable access into the Global Governance Model powered by UNFI (via migration).
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