# UP

**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:

1. **Long-term Alignment**\
   UP rewards long-term participants who actively govern and support the protocol, rather than short-term speculative behavior.
2. **Revenue-Driven Value**\
   Any potential value accrual to UP is derived from Unitas’ real protocol revenue, not inflationary incentives or financial engineering.
3. **Governance First**\
   UP is fundamentally a governance token. All economic mechanisms, including fee distribution, are subject to on-chain governance approval.
4. **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.

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## 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.

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## 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.

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### 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.

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### 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:

1. **Scale**
   * USDu supply surpasses **$1 billion**
2. **Revenue Maturity**
   * Protocol cumulative lifetime revenue exceeds **$100 million**
3. **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.

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## 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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## Tokenomics

* Total supply: 1B UP
* Circulating supply at TGE: 12.6%
* Allocation:
  * Ecosystem & Community: 45%
  * Liquidity & Exchange Programs: 18%
  * Investors: 22%
  * Team & Advisors: 15%
* Ecosystem & Community allocation supports:
  * Units based rewards distribution
  * Ecosystem expansion and integrations
* Liquidity & Exchange Programs allocation supports:
  * Exchange integrations
  * Market making
  * Liquidity provisioning

<figure><img src="/files/F4yYsuQpBG9nsuzXuqbj" alt="" width="563"><figcaption></figcaption></figure>

***

## Vesting

* Team & Advisors:
  * 12 month cliff
  * 24 month vesting duration
  * Linear unlock after cliff
* Investors:
  * 12 month cliff
  * 24 month vesting duration
  * Linear unlock after cliff
* Vesting aligns token distribution with:
  * Long-term protocol development
  * Governance participation

<figure><img src="/files/7TycsaXGW7JwXgUIDO4u" alt="" width="563"><figcaption></figcaption></figure>


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