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 blog 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.
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.
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. Priority Access to Ecosystem Incentive Programs
Stakers might be eligble for early access to various protocol-driven and partner incentives.
Reward Spec
(i) 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.
$HUMA Stakers can request to unstake at any time. Withdrawals become available after a 14-day cooldown. Stakers rewards are determined by the following formula:
where Staking Factor is a multiplier initially set to a promotional multiplier 10, and α is a global variable initially set to 20, approximately the inverse of the average $HUMA price over the past month. Both values can be adjusted through governance.
Huma Staking was launched right before TGE without clear details on rewards and cooldown periods. The messaging at the time implied that staking might have no lockup at all. The initial plan was to support this 0-day cooldown option with minimal rewards (1× Feathers). However, based on community feedback, it’s clear that a 0-day lockup not only undermines the purpose of staking but also adds unnecessary complexity to the product. Offering it as the default risks many early stakers receiving suboptimal rewards. As a result, we will sunset the 0-day cooldown option through a gradual transition.
Feedback Summary for Future Considerations
Update History
Disclaimer:
$HUMA is a utility and governance token intended solely for use within the Huma ecosystem. This document is provided for informational purposes only and does not constitute an offer to sell, solicitation to buy, or financial, legal, or investment advice. Participation in the Huma protocol and any interaction with the $HUMA token involves risk and should be undertaken only after careful consideration. Regulatory frameworks governing digital assets vary by jurisdiction and are subject to change. You are solely responsible for ensuring compliance with all applicable laws and regulations in your region. Always conduct your independent research and consult with qualified professionals before making any financial or investment decisions.
It’s time to join the next era of the PayFi movement.
— Huma Foundation
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Consider adding more tiers of lockups for tiered staking rewards (e.g. 3m, 6m, 12m, and 24m).
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Consider giving stakers direct APY boost for their LP positions when there is regulatory clarity.
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For Section 4.1, instead of using α, consider using token price directly when there is compliance clarity.
Update History
June 9: Initial draft, published for the community feedback.
June 22: Made the following edits and finalized the doc for the initial launch:
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Section 4.1: Added path to maximize the chance for early stakers to get 5x rewards, and sunset 1x reward & 0-day cooldown option
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Section 5.0: Summarized key feedback from the community for future considerations
June 25: Section 4.2.5: Reduced the Vanguard qualification requirements for those who have received more than 100,000 $HUMA tokens in the first airdrop.
June 30: Section 4.1: Updated staking reward multiple from 5x to the promotional 10x.
April 16, 2026: Updated to reflect the following changes to the tokenomics and removed the section related to LP Rewards, as announced in “HUMA: Build to Last”
April 16, 2026: Updated to reflect the following changes to the tokenomics and removed the section related to LP Rewards, as announced in “HUMA: Build to Last”
NOTE: The public comment period on this proposal is open until 00:00 UTC on June 17. The finalized proposal will be implemented by the end of June, at which point the new LP-rewards formula will take effect. Staking rewards will be applied retroactively starting May 26.
Disclaimer:
$HUMA is a utility and governance token intended solely for use within the Huma ecosystem. This document is provided for informational purposes only and does not constitute an offer to sell, solicitation to buy, or financial, legal, or investment advice. Participation in the Huma protocol and any interaction with the $HUMA token involves risk and should be undertaken only after careful consideration. Regulatory frameworks governing digital assets vary by jurisdiction and are subject to change. You are solely responsible for ensuring compliance with all applicable laws and regulations in your region. Always conduct your independent research and consult with qualified professionals before making any financial or investment decisions.
It’s time to join the next era of the PayFi movement.
— Huma Foundation