Question 1

What is UNION?

Accepted Answer

The UNION discussed here is Union Protocol's ERC-20 governance and utility token, not the U token of the identically named Union network. Union Protocol aims to enable members to form credit lines based on on-chain guarantee relationships, while UNION is used for the protocol's governance and membership process. Holding the token does not automatically establish a credit line; obtaining protocol membership also requires meeting the staking and guarantee conditions specified by the protocol.

Question 2

How can UNION holders participate in governance?

Accepted Answer

UNION holders can participate in Union Protocol governance. Token holders can delegate voting power to their own wallet address or another trusted address and vote on Union Improvement Proposals. Delegation is a method of designating voting power and does not mean transferring token ownership; whether and how to vote still depends on the governance process and the relevant proposal.

Question 3

Why must someone stake DAI, burn UNION, and obtain guarantees to become a Union member?

Accepted Answer

Becoming a Union Protocol member requires more than simply holding UNION. The official membership process requires applicants to stake DAI, burn 1 UNION, and obtain guarantees from other members. The three conditions serve different purposes: the DAI stake is a collateral requirement in the membership process; burning 1 UNION increases the cost of bulk registration; and guarantees from other members bring trust relationships between members into the protocol. After these conditions are met, the guarantee amount affects the credit line a member can establish.

Question 4

How does Union Protocol form on-chain credit lines?

Accepted Answer

Union's credit lines are based on guarantee relationships among members, rather than the protocol unconditionally underwriting every user. Members first enter the system through the prescribed qualification process, other members provide guarantees, and guarantee amounts form an important basis for establishing credit lines. This means that credit-line formation depends on member relationships and protocol rules: obtaining membership does not mean unlimited borrowing is available, and guaranteeing others or using a credit line still involves assessing the other party's ability to perform.

Question 5

How should UNION's genesis supply and release be understood?

Accepted Answer

1 billion UNION were minted at genesis. The official token documentation states that the initial allocation covers categories including the community DAO, team, and early supporters, and sets lock-up or vesting arrangements for some allocations. The genesis mint amount, unlocked amount, and actual circulating amount are different measures: tokens may be minted at genesis, but portions subject to lock-up or vesting do not become freely circulating immediately merely because minting is complete.

Question 6

How can UNION's supply change?

Accepted Answer

UNION's supply is not determined solely by the 1 billion minted at genesis. Official documentation provides that, from December 22, 2025, the Union DAO may mint up to an amount of UNION equal to 2% of supply annually. “Up to 2%” is an annual cap, not a fixed issuance that necessarily occurs every year: whether tokens are actually minted and how many are minted depend on whether the DAO makes the corresponding governance decision. The 1 UNION burned in the membership process reduces the specific token that is burned; subsequent minting and membership burns are supply changes in different directions and governed by different rules.

Question 7

Which rights and conditions should be distinguished when understanding or using UNION?

Accepted Answer

When evaluating UNION, first confirm the asset and protocol scope: this entry discusses Union Protocol's ERC-20 UNION, not other projects or tokens with similar names. Different projects may have different contracts, supply rules, and uses even if their names are similar. Governance rights, membership, and credit lines are not the same right. Holding tokens allows participation in the specified governance process; becoming a member also requires meeting DAI staking, burning, and guarantee conditions; and credit lines are governed by member guarantee relationships and protocol rules.

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