UP
UP Token Overview
UP is the native governance token of Unitas, designed to align long-term stakeholders with the sustainable growth of the protocol.
UP holders govern the evolution of Unitas by voting on key protocol parameters, including risk frameworks, economic policies, and the potential activation of protocol fee distribution.
Unitas does not employ token buybacks or artificial value mechanisms. Instead, UP’s long-term value is intended to be directly linked to the protocol’s real, transparent revenue generation.
Design Principles
The UP token is designed around four core principles:
Long-term Alignment UP rewards long-term participants who actively govern and support the protocol, rather than short-term speculative behavior.
Revenue-Driven Value Any potential value accrual to UP is derived from Unitas’ real protocol revenue, not inflationary incentives or financial engineering.
Governance First UP is fundamentally a governance token. All economic mechanisms, including fee distribution, are subject to on-chain governance approval.
Transparency and Verifiability Unitas commits to honest, ongoing disclosure of protocol revenue and economic activity as the basis for governance decisions.
Governance
UP holders may participate in governance to propose and vote on protocol changes, including but not limited to:
Risk parameters for USDu / sUSDu
Yield allocation policies
Supported strategies and integrations
Protocol fee structures
Activation or modification of the protocol fee switch
All governance actions are executed through on-chain proposals and voting.
sUP: Staked UP
To align governance participation with long-term commitment, UP can be staked to receive sUP.
sUP represents locked UP
Only sUP holders are eligible for protocol fee distribution if enabled
Staking UP into sUP is voluntary and reversible, subject to protocol-defined lock and cooldown rules
sUP does not introduce additional supply and does not represent a separate token issuance.
Fee Switch
Overview
Unitas includes an optional fee switch mechanism that, if enabled through governance, allows protocol revenue to be distributed to sUP holders.
The fee switch is not active by default and requires an explicit governance proposal and approval to be enabled.
Rationale
Unitas believes that protocol revenue distribution should only be activated once the system reaches sufficient scale, stability, and adoption.
Enabling a fee switch prematurely may compromise protocol resilience and long-term sustainability.
Activation Conditions
The activation of the fee switch will be proposed as Unitas’ first governance proposal, and may only be considered once all of the following conditions are met:
Scale
USDu supply surpasses $1 billion
Revenue Maturity
Protocol cumulative lifetime revenue exceeds $100 million
Distribution Readiness
USDu is integrated on at least 3 of the top 5 centralized exchanges, measured by derivative trading volume
These conditions are objective, measurable, and publicly verifiable.
Fee Distribution
If the fee switch is enabled:
Protocol revenue may be distributed quarterly
Distribution is made pro-rata to sUP holders
Distribution parameters (percentage, cadence, scope) are governed by on-chain proposals
There is no guaranteed yield, fixed return, or obligation to distribute fees.
Protocol Revenue
Protocol revenue may be generated from multiple sources, including but not limited to:
Yield strategy fees
Minting and redemption fees
Payment and settlement fees
Institutional and enterprise services
All protocol revenue will be transparently disclosed and used as the basis for governance decisions related to the fee switch.
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