UMA's optimistic oracle is a decentralized truth machine. The oracle can verify any statement proposed on the blockchain. It provides real world data so smart contracts and markets asking for that data can be settled.
The project consists of the following major components working in conjunction:
Optimistic Oracle (OO): UMA's Optimistic Oracle allows contracts to request and receive information. The OO provides that "real-world" data optimistically, which means that data is accepted as true unless anyone disputes the information.
Data Verification Mechanism (DVM): If a dispute is raised, a request is sent to the Data Verification Mechanism (DVM). Disputes sent to the DVM will be resolved after 48 hours after UMA token holders have voted to validate the off-chain data.
UMA is the native token of the project. The current use cases for UMA include:
Security: the token provides economic guarantees to protocols using UMA’s OO, including projects like Across, Polymarket and Sherlock.
Dispute Resolution: UMA’s community of ±token holders provide the human component, as voters, for the OO's final resolution on disputes or queries.
Governance: tokens are also used to vote on protocol upgrades and UMA DAO funds allocations.
On January 27, 2023, the maximum and total token supply of UMA token is 108,858,567. The current circulating supply is 68,947,415 (68% of the total token supply).