Status: Final

                                                     Last updated: June 29, 2025

1.0 Introduction

With the launch of $HUMA by the Huma Foundation, the protocol gains a powerful new incentive mechanism, staking.  This aligns the interests of both $HUMA holders and liquidity providers (LPs). This document details the specifications of the $HUMA staking rewards framework, covering both staking incentives and LP rewards.

Stakers will also enjoy the privilege of participating in protocol governance. Governance design will be addressed in a separate proposal upon the launch of Huma’s on-chain governance system.

2.0 Principles

  1. Reward long-term believers and firm believers

    From the beginning, Huma has prioritized its early and committed community. During TGE, we demonstrated this by allocating pre-sale allocations to OG LPs and including early contributors in Kaito rewards. The community responded strongly and positively. We will continue to design products that reward long-term conviction and active participation.

  2. Protocol sustainability

    Reward planning must be systematic and balanced. Over-rewarding any single period or group, no matter how valuable, can undermine the protocol’s long-term growth and appeal. For example, OG LPs who become Huma Vanguards should receive meaningful multiples, but not at the expense of making the protocol unattractive to new participants, which will negatively impact the interest of everyone, including the OG LPs. Long-term success depends on growing the ecosystem sustainably for all stakeholders.

  3. Consistency

    Reward rates are designed to be reasonably stable, providing users with clarity and predictability. LPs can make informed decisions about how many $HUMA and LP tokens to acquire and lock, without needing to react to unpredictable shifts in others’ behavior.

    To protect long-term participants, the protocol includes a safeguard: once a user locks their LP position, their Feather reward rate is guaranteed to be the greater of the current rate or any improved future rate—unless the position is modified by the user (e.g., by adding or unstaking tokens). This mechanism ensures that users committing to long-term lockups are not penalized by future changes and are encouraged to participate with confidence

    Example:

    If an LP entered Maxi Mode in May with a 6-month lock and received a multiple of 17.5, and a new formula that yields a multiple of 15 is introduced in June, the user keeps the original 17.5 for 6 months from the initial deposit date. Should the updated formula raise the user’s multiple to 18, the user will automatically receive the enhanced rate.

3.0 Summary of Staking Benefits

Below are some core benefits that Huma protocol provides to its stakers. As the protocol evolves, additional benefits will be introduced.

  1. Protocol Governance

    Stakers will have voting rights in Huma protocol governance. Details will be outlined in a future proposal.

  2. Staking Rewards

    Stakers earn rewards directly, without needing to be LPs.

  3. Boosted LP Rewards

    Stakers receive enhanced rewards on their LP positions.

  4. Priority Access to Ecosystem Incentive Programs

    Stakers enjoy exclusive or early access to various protocol-driven and partner-based incentives. Examples include:

4.0 Reward Spec

4.1 Staking Rewards

$HUMA stakers play a vital role in decentralizing the Huma protocol. They help shape governance, support adoption, and advance the mission of PayFi. In return, stakers earn rewards for their contributions, without needing to provide liquidity.

Staking rewards are distributed in the form of Feathers, similar to LP rewards. For each airdrop season, all Feathers earned through staking and LP participation are combined to determine a user’s share of the airdrop.

Stakers can request to unstake at any time. Withdrawals become available after a 14-day cooldown. Stakers rewards are determined by the following formula: