# Introduction

### **What is the KUMA Protocol?**

The **KUMA Protocol** is a decentralized protocol issuing [interest-bearing tokens](https://docs.kuma.bond/kuma-protocol/kuma-protocol/composable-interest-bearing-tokens) backed by [regulated NFTs](https://docs.kuma.bond/kuma-protocol/kuma-protocol/regulated-nfts), themselves backed by Real World Assets (RWA). At start the KUMA Protocol accepts regulated KUMA NFTs that are backed by [bonds](https://docs.kuma.bond/kuma-protocol/kuma-protocol/regulated-nfts). 

The KUMA Protocol and tokens have been designed to be more user-friendly than traditional bonds. Unlike the latter, which can be difficult for business & retail investors to understand and access, the KUMA interest-bearing tokens (KIBT) can be easily bought and sold on decentralized applications, making them accessible to a broader range of users. Furthermore, because the KUMA Protocol uses blockchain technology, the entire process of issuing the tokens is audited, transparent and secure.

The KUMA Protocol results from the work of two distinct organisations: Mimo Labs and the KUMA DAO. Mimo Capital AG issues tokens backed by bonds (KUMA NFTs) using NFT technology, while the KUMA Protocol is a decentralized entity governed by MIMO token holders that leverages these NFTs and issues interest-bearing tokens (KIBT): smaller denominations of tokenized bonds into interest-bearing tokens. These interest-bearing tokens behave similarly to stablecoins whose balance increase automatically.

<figure><img src="https://3605577161-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FkKQ5DiyLafcK3PW7fgAp%2Fuploads%2FJY3ETwaKf3uT3LWJJ2N9%2Fmermaid-diagram-2023-02-14-172235.png?alt=media&#x26;token=3c3838a4-127d-484b-b6ac-e9b421ae32bf" alt=""><figcaption></figcaption></figure>

### How is the KUMA Protocol governed?

The KUMA Protocol is a community-run, community-governed protocol. Changes are made through proposals that are voted by **MIMO** token holders who lock their MIMO governance tokens in exchange of voting power (**vMIMO**).

Governance discussions take place **here** and every proposals are posted on **Snapshot**.

{% hint style="info" %}
Find out the [Governance Process](https://docs.kuma.bond/kuma-protocol/dao-and-governance/governance-process) and the [Proposal Framework](https://docs.kuma.bond/kuma-protocol/dao-and-governance/proposal-framework) of the KUMA Protocol.
{% endhint %}


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