Burn & Release: Resetting the $UMJA Market

Since launching the $UMJA token in 2024, our team has watched the Umoja protocol grow at an incredible pace — yet we’ve also witnessed the $UMJA token’s price dip over the same period. This blog post introduces a new initiative called Burn & Release, designed to accelerate token distribution, remove significant future sell pressure, and help $UMJA bottom out in price so it can start climbing again — especially as protocol TVL continues to rise and $UMJA’s staking utility for yBTC becomes more valuable.

From Bootstrapping to Exponential TVL Growth

At the end of 2024, the Umoja protocol was at a crossroads:

• We could spend hundreds of thousands on centralized exchange listings and heavy marketing, hoping it would buy UMJA’s short-term price.
• Or, we could extend our runway to finalize the $yBTC product — a yield-bearing Bitcoin integration that we believed would truly solidify our protocol’s value proposition.

We chose the latter. In just a few months, the protocol’s AUM (assets under management) grew 10x, crossing $1M in TVL in under three weeks.

Our next milestones?

$5M and then $10M!!!

These are now in sight for this quarter, each pushing $UMJA’s intrinsic value up as more BTC yields are generated for $UMJA stakers. Ultimately, a strong product foundation creates organic momentum, making future exchange listings and marketing efforts far more impactful.

However, even as our protocol thrived, UMJA’s price on DEXs continued to slide, and liquidity remained low — factors that can overshadow robust protocol growth in the eyes of many retail investors.

Token Distribution: The Real Driver of Price?

A key realization we had during this journey is that “token price ≠ purely tokenomics.” Over the past few years, the market has shown that distribution and marketing are the biggest levers driving a token’s price movements — far more than clever vesting schedules or “perfect” token models.

In fact, many retail participants today favor tokens with a majority of the supply already unlocked. It removes the worry that a slow “rug-pull” might happen as founders or early investors continuously unload vested tokens. For $UMJA — which already sits at a low market price — accelerating investor vesting (and burning the original locked tokens) could effectively reset the token’s base price. If the market perceives that future sell pressure is now out of the way, it opens the door for organic demand to rise, particularly as the value proposition of staking for $yBTC continues to strengthen.

By “bottoming out,” we believe the token can find its real market floor, allowing new buy pressure to naturally push $UMJA’s price in an upward trajectory — especially as protocol metrics (TVL, Bitcoin yields) continue to climb.

What Is Burn & Release?

Burn & Release is a program that accelerates vesting for $UMJA-SEED holders while permanently removing the original locked tokens from circulation. Here’s how it works:

1. Voluntary Participation: Investors holding $UMJA-SEED (which represent unvested $UMJA on a linear schedule) can opt into “Burn & Release” on a dedicated interface.
2. Burn = Locking Tokens Forever: When an investor chooses to “burn” X unvested $UMJA-SEED, the $UMJA tokens that this investor is due at vesting.umoja.xyz become permanently unclaimable. They remain in the vesting contract, never entering the circulating supply.
3. 1:1 Exchange: As soon as the investor burns those locked tokens, they get the same number (X) of $UMJA from our existing 1.1B mint rewards allocation — no new tokens are minted. This is effectively accelerating the vesting period, giving investors immediate tokens while eliminating future vesting unlocks.

Here’s a simplified example:

Alice has 50,000 $UMJA-SEED tokens, vesting monthly until October 2025.

• She opts to “Burn & Release” all 50,000.
• Those 50,000 remain locked in the vesting contract forever (effectively “burned”).
• Alice immediately receives 50,000 $UMJA from our 1.1B token pool.
• A portion of $UMJA’s future supply is removed, reducing long-term sell pressure.

If enough token holders do this, we can eliminate up to 7–8% of $UMJA’s total supply from ever entering circulation. The result? A more concentrated circulating supply that has effectively “bottomed out.” From there, new or existing holders who believe in $UMJA’s upcoming growth narrative can drive the token’s price upwards more organically.

Why Burn & Release Will Help “Reset” the UMJA Market

1. Permanent Reduction of Future Sell Pressure: With each “burn,” we remove vesting tokens that would otherwise drip into the market over time. That means a one-time unlock replaces a prolonged trickle of sell pressure — far more appealing to new buyers who fear constant overhead dumping.
2. A “Bottomed-Out” Price: By accelerating vesting at a lower price point, we effectively shift the distribution landscape so that existing investors gain liquidity sooner, but can’t keep releasing tokens over many months. The net effect often results in a new price floor once the overhang is gone.
3. Clarity for New Investors: Many smaller buyers avoid tokens still heavily locked among seed investors and teams. Burn & Release clears the air, showing a higher percentage of supply already in circulation and fewer future unlocks to worry about.
4. Enhanced Staking Incentives: We’ve pushed $UMJA’s utility to the forefront: you can stake $UMJA to earn $yBTC — a rare offering. As our TVL continues to climb from $1M to $5M and beyond, the actual yield in BTC for $UMJA holders grows, adding strong fundamental value to the token. Once the market perceives that future sells are minimal, more buyers will confidently stake UMJA for BTC rewards, further driving demand.

The Power of $UMJA

$UMJA, Umoja’s native token, is deflationary and stakable for high-yield YVTs like $yBTC.

As Umoja’s TVL grows, staking UMJA earns more smartcoins. Thus, $UMJA’s intrinsic value rises with TVL, while its fixed supply decreases as minters burn it to redeem collateral.

TLDR: The more smartcoins minted, the more valuable $UMJA becomes.

Not only that, but staking $UMJA earns token holders governance rights and other privileges that can result in more rewards.

Looking Ahead

Burn & Release is our immediate measure to reset the $UMJA token’s distribution profile. Coupled with our upcoming marketing campaign and a potential centralized exchange listing, we believe it sets $UMJA on a healthier, more sustainable path. As the protocol’s AUM grows — and as you, our community, help spread the word about $UMJA’s “stake for $BTC” vision — we’re confident the token’s price can reflect the exponential traction happening under the hood.

Be on the lookout on X and our blog for updates as to when Burn & Release is being rolled out at umoja.xyz so that you may participate if eligible.

Thank you for standing by us through these crucial months. We appreciate your continued faith in $UMJA’s potential, and we’re committed to making $UMJA the go-to staking asset for Bitcoin yields in DeFi.

About Umoja

Backed by the likes of Coinbase, Blockchain Founders Fund, and Quantstamp amongst others, Umoja is a next-gen yield vault token (YVT) protocol transforming digital assets into high-yield investments, powered by DeFi’s first trade execution engine. We’re starting with $yBTC, the world’s highest-yield BTC token.

Umoja’s mission is to democratize wealth creating tools for everyone.