Basic Concepts
Understanding the basics of Umia
What are Ownership Tokens?
Ownership tokens are ERC-20 tokens that represent ownership of a project. Put it simply, they are just like regular tokens that you can buy, sell, and hold, but they have a few extra properties:
- There exists an off-chain agreement (i.e. a "contract") that defines the rights and responsibilities of the token holder, similar to a traditional share certificate. This agreement is legally binding and can be enforced in court.
- The token holder is entitled to a share of the project's assets and revenue based on whatever the governance of the project decides, such as voting on proposals and creating decision markets through Umia.
- This makes sure that if the project's governance process decide something, it will actually be enforced. This puts an end to "promises" made by project builders that are never implemented.
What are Decision Markets?
Decision markets are a type of prediction market that allows one to express one's beliefs about the outcome of a decision. They are a futarchic system where traders make conditional trades on the outcome of a decision.