The Umee Blockchain is built on a network of validators that contribute Tendermint BFT consensus to the protocol. Tokens are bonded to validators that stake to provide Proof of Stake consensus to the network. Validators come from an open ecosystem of contributors and infrastructure providers. Tokens can also be delegated to validators by users to participate in the underlying consensus mechanism. This helps ensure the Umee network remains decentralized.
Network fees will be earned in the form of UMEE tokens by validator infrastructure providers.
Similar to how ETH is used as a gas fee to pay for transactions on the Ethereum blockchain, UMEE is used as a gas fee to pay for transactions on the Umee Blockchain.
Validators earn block rewards in the form of UMEE similar to how transaction fees are processed in native blockchain protocols.
The native UMEE token is also a protocol governance token used to facilitate on-chain governance for the Umee Blockchain. The UMEE token, when staked, can be used to vote on protocol parameters and upgrades for improving functionality of the blockchain infrastructure. The UMEE token will also govern DeFi parameters of applications that sit on top, community grants, and future development.