What Is Kuma Inu (KUMA)? 

Kuma Inu (KUMA) is a community-driven meme cryptocurrency and DeFi platform. Meme tokens are based on internet jokes (memes) and recent events and are often endorsed by influencers. 

The rising popularity of meme cryptocurrencies has triggered a domino effect, opening new prospects for users who don't want to rely on centralized finance that is often regulated. Kuma Inu aims to provide users with valuable crypto products and thus establish a robust community of token holders. 

According to the whitepaper, the Kuma Inu ecosystem consists of the following key features:

• Kuma Breeder: Kuma breeder is a yield-farmingprotocol. The objective is to give the Kuma Inu community a fair token distribution system that ensures that the Kuma community benefits from the Breeder farming pools. 

• Kuma Vault: Kuma Inu aims to develop a vault system that maximizes investment returns. Kuma Vaults work similarly to DeFi Vaults in that users deposit tokens and receive comparable tokens. The unique feature of Kuma Vault is that users can withdraw the same token that they deposited. 

• Kuma Vessel: Kuma Vessel is the decentralized autonomous governance structure of the Kuma Inu community. The organization aims to maintain control over the project's marketing, development, and other essential areas. The Kuma Vessel smart contract stores funds with a significant emphasis on community. Here, smart contracts are like regular contracts; however, instead of being drafted on paper, these contracts run in the form of protocols on the blockchain.

• Kuma DEX: Kuma DEX is a decentralized perpetual contract trading platform for meme coins. Perpetual contracts are cryptocurrency derivatives that let traders speculate on the value of underlying assets. A trading fee is charged while opening and closing positions on Kuma DEX. The platform intends to use the collected fees for project development and community encouragement.

• Kuma DEX DAO: It is an alternative DAO (decentralized autonomous organization) focusing on Kuma DEX product management and development. The creators established a separate DAO for the platform because it is the essential product in the Kuma Inu ecosystem. The DAO is responsible for all Kuma DEX-related decisions.

Kuma DEX uses virtual automated market makers (vAMMs) to enable perpetual contracts. The concept is based on AMMs (automated market makers). The AMM is a smart contract platform that allows traders to make token swaps using liquidity provided by users. In other words, a virtual automated market maker (vAMM) is a mechanism that provides virtual liquidity, allowing users to trade derivatives entirely on the blockchain. 

Coming to the token, there are two tokens in the Kuma Inu community, namely KUMA and dKUMA. The Kuma DAO's (Kuma Vessel) native governance token is KUMA. On Breeder, KUMA can also be employed for generating yields. KUMA V1 was recently upgraded to KUMA V2. The Kuma DEX's native utility token, dKUMA, is the other token.

History of Kuma Inu (KUMA)

The updated whitepaper of Kuma Inu was published in June 2021. The whitepaper doesn't list any founders or teams since they are anonymous. Instead, it names its community members as the project owners.

KUMA has a maximum total supply of 1,000 trillion KUMA. As a goodwill gesture, 50% of the supply was set aside for Ethereum founder Vitalik Buterin. The Ecosystem Fund received 12% of the proceeds for marketing, development, etc. Founders sealed 10% of the tokens for 100 years. Ryoshi, another meme token, received 3% of the total supply. The remaining 25% was traded on decentralized markets.

How Are New Kuma Inu (KUMA) Created? 

As mentioned in the whitepaper, the network runs on Ethereum and uses a proof-of-stake consensus mechanism to validate transactions and forge new blocks on the chain. Since KUMA is a governance token, users can stake KUMA on the platform to gain voting rights. The higher the number of tokens staked, the greater the vote's weight.